Mileage Deductions 2009 - MileageTax Deduction
The Gas Mileage Bible
by Kenny Joines & Ron Hollenbeck

The Gas Mileage Bible is a must for anyone who drives a car. It's easy to understand if you do not know a lot of about cars, yet it has lots of information that would even interest those weekend mechanics. The authors provide simple scientific explanations on what causes losses and gains in fuel economy. In addition, they lay out clear-cut gas-saving solutions, breaking them down into straightforward categories: "no tech", "low tech", and "high tech", which makes it easy to understand how quickly and easily you can implement each solution.

One person improved their fuel economy in their two vehicles by at least 2 mpg without buying any upgrades or gadgets. They feel that "high tech" implement that can improve fuel economy even further. A must read if you drive a car

     

Mileage Deductions 2009 - MileageTax Deduction

Mileage Deductions 2009 * MileageTax Deduction

Valuable Tax Deductions for your Vehicle You Can't Afford to Miss   
Germaine A. Hoston, Ph.D.

Is your business missing out on valuable tax deductions you can take for the use of your personal vehicle for business purposes?If you haven't done so already, you should definitely beat a path to the door of your local office supply store and pick up a notebook for logging the mileage you drive to conduct business--and be sure to log the miles you drove to buy it.


Not taking the trouble to do this is like letting your pricey gasoline flow onto the pavement instead of into your tank!

Article to continue below----------------------------------------------

1996 Volkswagen Passat GLX From North America - Comments (Carsurvey.org)
Everything... The transmission is going out, the water pump has failed (twice), the dashboard flashes on and off, the odometer has stopped working, the ABS light is always coming on, poor gas mileage,...

----------------------------------------------------------------------------


Even if you work at home most of the time, miles you've driven to purchase office supplies, buy stamps or mail packages, and other errands for your business can translate into big tax deductions. With fuel costs soaring, you are literally throwing money down the drain if you are not keeping track of this mileage and taking the deductions for it to which you're entitled as a business owner. And the first entry you need to make is the beginning mileage on the odometer as of January. You'll also want to make sure that you keep track of all your automobile expenses associated with that personal vehicle that you're using for business.(See below.)


The dramatic surge in fuel costs has not been lost on the IRS. Of course, gasoline prices began to edge up shortly after the beginning of the war in Iraq; but the devastation wrought by Hurricane Katrina prompted the IRS to offer a valuable money-saving solution for business owners. (If you live outside the U.S.A. you should check your tax authority's website for similar provisions.)

Article to continue below----------------------------------------------

On Yer Bike! (Manxnet)
Britannia International, Isle of Man, 12 March 2010 – Britannia International staff are substituting their cars and opting to commute to and from work by cycling, running and walking as part of...

---------------------------------------------------------------------------


Last year,for 2005, the IRS increased the standard mileage rate for the use of a vehicle (car, van, or truck) by 3 cents a mile, to 40.5 cents a mile for all business miles driven. However, in the wake of Katrina, that rate was increased further to 48.5 cents a mile for the business miles driven in the months of September, October, November, and December, 2005.


This increased mileage rate ended with the end of 2005. The new mileage rate for 2006, effective January 1, is now 44.5 cents per business mile driven. You can maximize this deduction if you're careful to consolidate business and personal errands. For example, I wait until I need to go to the post office to ship a package for my business to stop to at the drug store and supermarket right next door to pick up groceries. What would have been "dead" mileage becomes a deductible business trip, as long as you've logged your business purpose in your mileage logbook.


In addition, for both 2005 and 2006, the IRS also encouraged Katrina-related charitable relief activities by granting higher rates for miles deductible and miles reimbursable driven for such activities.


Of course, the use of these mileage allowances can be rather complicated. For example, you cannot take additional deductions for business use of an automobile to which you have already applied the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle that your business purchased directly.


And if you're using a personal vehicle for your business, don't forget to calculate the percentage of total miles for the year that you travel for business purposes. At the end of 2006, you'll note the year-end odometer reading in your mileage logbook and subtract from it the odometer reading that you recorded this month. Then you'll add up all miles driven for your business that you have recorded and divide it by that total mileage to calculate the percentage of total miles you used for your business. If it turns out that 30% of your total mileage on that personal vehicle was for business purposes, you can deduct 30% of *all* your expenses for maintaining that vehicle: not only fuel, but all trips to the garage for routine maintenance or special repairs as part of your business expenses for the year.


The devil is in the details, as always, of course. You will want to consult your tax accountant on how best to apply the rules to your situation. If you prepare your tax returns yourself, you can get the details directly from the IRS website:
http://www.irs.gov/pub/irs-drop/rp-04-64.pdf. Examine the fine print closely: You'll find that there are limits on what percentage of business use can be claimed for a personal vehicle, no matter what your actual numbers might be; so if your actual business mileage is greater than 75 per cent of your total mileage, you might be better off purchasing a separate vehicle dedicated to business use. If you've taken the care to structure your business correctly--using a corporation, limited liability company, or other stand alone entity--you and your business will benefit from even greater deductions.


(C) Copyright 2006 Azur Pacific Associates. All formats and media, known and unknown. All Rights Reserved.



Germaine A. Hoston, Ph.D., President of Azur Pacific Associates, a consulting and translation firm, has operated successful consulting businesses in the US and France. Get a free special report when you subscribe to her free eNewsletter at http://www.wealthstrategies202.com.

Who are the CPA Moms?      Your Tax Professional Forever!!!!

“CPA Moms - Tax Moms - EA Moms" are trade names given to Accounting and Tax Professionals who chose to work in an “relaxed” environment. Some "Moms" work from home, other work from personal offices. Not all are Moms, there are some Dads. We call them Mr. Tax Moms. CPA Dads or Enrolled Agents Dads.
Each Mom is independent. Once a client starts working with a Mom, the client will keep the same “Mom” year after year regardless of where the client moves or relocates. Being in a “relaxed” environment has many advantages. Lower overhead, faster response time, more availability, etc.
To be a member a CPA Mom, Tax Moms, or an Erolled Moms the Tax Professional must ALWAYS be in good standing with their state licensing agency, experienced, and must demonstrate a high level of ethics, professionalism and proficiency.
Tax Net Inc, the parent company for all CPA Moms, Tax Moms and Enrolled Moms, developed the marketing and on-line systems to help qualified Tax Professionals who "choose" work from their “relaxed” environment and offer better service at a lower price to the consumer.
Since the “Moms” do taxes and accounting of all complexities, there is always a Mom available for every level of work. Since each Mom has a private 800 number, you are just a phone call away, regardless of where you live.
For reliability and dependability of Tax Net, Inc, the parent company of the “Moms” organization click on the Better Business Bureau (BBB) icon.

To Join CPA Moms

Click for accredited member's reliablility report.

Privacy Policy    About Us    Disclaimer    Copywrited 2005  - 2010 & Developed by  Tax Net Inc

Index of Articles about Mileage

What Other Authors say about IRS Mileage Deductions

Automobile Expenses - Tax Write-Offs by Richard Chapo

If you use a vehicle for conducting business, you can deduct certain automobile costs from your tax bill. This is true even if you use the vehicle for personal and business needs. Automobile Deductions The...

The Secret To Getting The Best Car Lease Deal by Daniel DeHaven

When you lease an automobile, you are paying for the depreciation from the final sale price to the residual value once your lease term is finished. Let's use a simple example, the final sale price of the...

Take Control of Your Gas Prices by GranMamma

- Car pool. Join your neighbors for shopping and picking up the kids.- Walk. If your convenient store is just around the corner, you could be getting some great exercise.- Buy a five-gallon gasoline can...

How to Get the Best Fuel Mileage of Your Car And Save Gas Money by Sunny Tan

Recent technology advancement in automotive industry has seen an upsurge in improving the fuel economy of our car engines and thus making them as efficient as they can be. Heavy investment has been poured...

Gas Mileage Enhancers - how to get better gas mileage by Paul

There are many car repairs you can (and should) do to get better gas mileage. Since almost every system in your vehicle can affect gas mileage, here are some of the more common repairs to increase gas...