Some good news and some bad news. First, the good news is that the IRS increased the standard business mileage rate from $0.505 per mile to $0.585 per mile effective 7/1/08. Normally the rate only changes at the beginning of each year. The bad news - and it's not really bad news, just a minor inconvenience - you'll need to do a little extra work when you calculate your mileage for the year. Here's what you need to know:
1. Total miles driven during 2008. (Odometer reading at 1/1/09 less the reading at 1/1/08.)
2. Total business miles driven between 1/1/08 and 6/30/08.
3. Total business miles driven between 7/1/08 - 7/31/08.
Don't forget that you must have a mileage log to substantiate your vehicle deductions (whether you claim the standard mileage rate or actual expenses). There are a few shortcuts, so let us know if you'd like to discuss your options.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment