IRS Mileage Deduction Growing Along with Gas Prices
Thursday July 3, 2008
While it may not have any impact on your growing out-of-pocket expenses for gas, the IRS has a bit of good news: as of July 1, the allowable mileage rate has increased to 58.5 cents per mile. Deductions for the first half of the year will remain at 50.5 cents per mile.
Usually you only have to keep one cumulative total, but with the mid-year rate change, you'll need to separate Jan-June from July-December trips.
Our U.S. Business Law / Taxes Guide, Jean Murray, has advice on deducting car & truck expenses. With the price of gas like it is, even if you haven't been tracking it in the past, it might be worth the effort now.
I will be itemizing car/gas expenses this year, because the standard mileage will not be enough. If you actually use your vehicle a lot, make sure you save ALL receipts and analyze the possibility of itemizing…