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*************************Kind of a tricky and complicated issue. It's always creeping up but last I checked the IRS rate was 50 cents or so per mile. What you can charge above that would be considered income and therefore taxable if you don't have receipts. If you can charge 50 cents, write off 50 cents and then travel for much below that cost it's tax free income. If you feel bad about evading taxes it's always an option to document and declare actual costs. You can do that I believe even if those costs would exceed 50 cents a mile. I'm pretty sure about that but you could get "red flagged" if your numbers don't line up with the computer's norms.When the IRS figures that 50 cents it's based on a comprehensive average that includes high level sales staff, service fleets and Joe Blow using his car/truck for anything work related. So the dude with a 20 year old vehicle, fairly good on gas and he does his own maintenance and repairs can make out very well at 50 cents a mile. The guy with the brand new massive Turbo Diesel truck on borrowed money insured to the hilt is typically going to be spending every bit of that 50 cents and ought to be saving those receipts and doing the cost comparisons--------probably need an accountant when you start getting into depreciation and such. That's why they use the 50 cent figure, to make life simple for us peons who can't afford a good tax accountant.
*************************
Kind of a tricky and complicated issue. It's always creeping up but last I checked the IRS rate was 50 cents or so per mile. What you can charge above that would be considered income and therefore taxable if you don't have receipts. If you can charge 50 cents, write off 50 cents and then travel for much below that cost it's tax free income. If you feel bad about evading taxes it's always an option to document and declare actual costs. You can do that I believe even if those costs would exceed 50 cents a mile. I'm pretty sure about that but you could get "red flagged" if your numbers don't line up with the computer's norms.
When the IRS figures that 50 cents it's based on a comprehensive average that includes high level sales staff, service fleets and Joe Blow using his car/truck for anything work related. So the dude with a 20 year old vehicle, fairly good on gas and he does his own maintenance and repairs can make out very well at 50 cents a mile. The guy with the brand new massive Turbo Diesel truck on borrowed money insured to the hilt is typically going to be spending every bit of that 50 cents and ought to be saving those receipts and doing the cost comparisons--------probably need an accountant when you start getting into depreciation and such. That's why they use the 50 cent figure, to make life simple for us peons who can't afford a good tax accountant.
