Gary Bode, CPA: our past posts can help you decide if using the IRS standard mileage rate makes sense. For a free initial phone consult, please call 399-2705.
The IRS raised standard mileage rates for business use of a vehicle to 55.5 per mile cents starting July 1, 2011. The rate for the beginning of 2011 stays at 51 cents per mile. For documentation requirements on mileage, read our post on business mileage for Schedule C. For rules of thumb on what these rates mean in actual tax savings vs cost, see our post on Schedule C mileage calculations.
Bottom Line
We’re now recommending using the Actual Cost method for deducting vehicle expense for clients who can do so. The standard mileage rate just doesn’t cover vehicle expenses with the current gas prices.
Proactive CPA
Many of our CPA posts deal with esoteric IRS tax issues. But we pay attention to the basics, like vehicle expense deduction techniques, too. We’re a Wilmington NC CPA firm, but serve a broader geographical base. Why? Our free phone consults attract clients who appreciate our expertise enough to see that technology allows us to offer great service wherever you live. Call us at (910) 399-2705.
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