The IRS has raised the standard mileage rate to 58.5 cents per mile, up from 50.5 for the first six months of the year.
The standard mileage rate can be applied for any miles that your vehicle is driven for business purposes. It can be a large deduction against your business if properly documented. There is no requirement to contemporaneously record mileage, but that is the best method. Many business owners will try to recreate their miles for the year and they nearly always cheat themselves.
Personally, I record miles in my calendar. I use Outlook and post my appointments there. When I return I put the mileage driven on the location line of the appointment. Also, don't forget trips to the bank, accountant, attorney, office supply store, etc.
The standard mileage rate is not just to capture fuel, but also, depreciation, insurance, maintenance and other fixed and variable costs of operating a vehicle.
Recent Comments