IRS Mileage

Calculating the amount of IRS mileage deductions you might be able to claim for using your car for various purposes can sometimes be quite confusing.

The rates allowable change each year, so it's important to double check your numbers using a good reference site before you estimate your deductions.

IRS mileage rates can be then used to help you calculate if you're able to deduct the operating costs associated with running a vehicle for business use or for medical use or for moving purposes.

The IRS mileage rates for using a vehicle were increased to help offset the rising cost of fuel during 2008, but as of January 1, 2009 have now been amended.

The current IRS mileage rates are as follows:

55 cents per mile for any business miles
24 cents per mile for any medical or moving reasons
14 cents per mile in the service of any charitable organizations

Always keep in mind that these rates are subject to change, so before you add these figures to your tax estimates, double check what the current rate is so you can be sure you're deducting the correct amounts from your taxable income.

Per Mile Calculation vs. Actual Cost Calculation

Depending on the amount you use your car, van or pickup truck, you might find that claiming standard IRS mileage rates for your vehicle use might not be as much as you could claim by keeping accurate records for the actual costs incurred.

This can mean calculating the actual costs incurred for things like depreciation or lease payments, insurance, registration, license fees, personal property taxes, gasoline, oil, tires, service and maintenance and any repairs.

While this may require slightly more book-keeping to retain information about all the costs of operating your vehicle during this time, it can give you a far more detailed understanding of the amount spent.

You can also then calculate whether the actual operational costs of your vehicle will generate a larger tax deduction than using the standard IRS mileage rates instead.

You may also be asked to determine which portion of total usage was for business use, medical or moving purposes and which portion was for personal or family use.

In some instances this may require logging the miles traveled in a log book or journal to best determine the accurate percentage figures.

When Can't You Use the Standard IRS Mileage Rates?

Tax payers aren't able to use the standard IRS mileage rates for their car if they've already used any other method of depreciation or claimed any other deduction for that same vehicle. If you're in doubt as to the best way to maximize your deductions or costs then always check your calculations with a professional to ensure you're getting the best possible advice that is up to date with any changes that have been implemented.

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Irs Mileage

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