i travel 300 miles a month
50 cents a mile seems like an excessive write off...is it right?
IRS allowance is 50.5 cents per business mile for 2008. I know my husband has to keep a journal of ALL miles, not just business, so they can see the percentage of business use.
2009 rate is 55 cents
(Googled mileage allowance, and got IRS site)
[quote="littlecake"]i travel 300 miles a month
50 cents a mile seems like an excessive write off...is it right?[/quote]
$150 does not sound excessive to me. That's a lot of miles. Those are all business miles, right?
yeah, all business....
i'm gonna keep a log book next year, my tax lady said to even write off the trips to walmart.
it made a nice lil dent in my taxes...YAY!
This may be too late in the day for you, but there are actually 2 mileage rates for 2008. The 50.5 cent rate is for January 1 - June 30. The rate for July 1 - December 31 is 58.5 cents/mile. They had to increase the rate due to the spike in gas prices last fall.
Bear in mind that the rate the IRS permits you to write off as a mileage deduction is NOT the same as a delivery charge. The IRS does not dictate to you what you are "allowed" to charge (I swear, folks, I'm so discouraged to see so many people these days looking for PERMISSION to do everyday things! Even down to "can I have this filling with that cake flavor?" Geesh, is there a food police out there that I don't know about?)
Ok, I got a little sidetracked ...... the IRS DEDUCTION is suppose to be an allowance to cover gas, oil, general wear and tear, depreciation on your vehicle when used for business. A DELIVERY CHARGE covers gas, oil, general wear and tear, depreciation on your vehicle, commercial insurance, payroll for the person making the delivery (whether it's you or an 'actual' employee), lost opportunity costs (you can't be baking a cake if you're in the van making a delivery; you can't be meeting with a potential client if you're in the van making a delivery), PLUS a mark up for even HAVING such a service and a profit on said provided service.
The IRS does not tell me how much I'm allowed to charge for a service. Don't confuse the two.