 2009 IRS Mileage Allowance
This article is about the 2009 mileage tax deduction - mileage allowance until 2010
For the 2010 Mileage tax deduction allowance go here
December 1, 2008;
For this year 2009 the tax deduction rate is lower!
You must keep mileage records for the IRS tax prep and differentiate between
your business, personal, charity and moving miles.
You may take either a business vehicle tax deduction with receipts for all expenses or mileage deduction.
For 2009 business miles driven at $0.55 per mile (55 cents per mile)
For 2009 charity miles driven are @ $0.14 per mile.
For 2009 moving and medical miles driven are @ $0.24 per mile.
The charity, medical and moving mileage deductions are not as much of an advantage.
Let's focus on IRS business mileage allowance here a bit.
The business miles are often the best deduction and even though the
price of gas is coming down as of fall of 2008. You never know what gas prices will do.
If you have a business that logs a lot of highway
miles like I do at 55 cents per mile it still should be a better method for
2009. Best keep track by both methods so that when tax time comes you can do the math and decide which is the better.
Keep a log book to track the odometer readings each day.
I was told how mileage was re-created for one day when someone forgot to log the
difference between personal miles and business. They went to this website
that offers online maps and driving directions and mapped out the trip.
I do all of the preliminary record keeping work and
trust my accountant for the details. You can get software programs that are very helpful for tax prep and a lot of folks use them.
Some people feel that they don't need an accountant because the
electronic filing and tax prep software is so easy to use. It's definitely worth the effort to at least learn about the ease of use of the software and decide whether you want to save the cost of the accountant.
You also have the option of deducting using the percentage method whereby
you have to save all receipts for parking fees, gas, registration, repairs etc.
If you had a catastrophic year, repair wise, or had to park in a pay garage everyday that might warrant keeping all records and possibly using the percentage method.
For medical and moving expense the IRS is allowing a $0.19 a per mile deduction. For some it is negligible.Some people have to travel for dialysis or chemotherapy on a
regular basis.
It might be vital that they save the money using the deduction.
The charity deduction @ $0.14 could be an issue if you did it on a regular basis but again
you have to check the numbers.
The above info can be a make it or break it situation.
For those who are self-employed and just starting out in business for yourself you should think about this right away so that your records will be accurate.
The mileage deduction amounts change every year so be sure to come to visit this site before you start every new year just to know where you will stand deduction wise.
Good Luck!
lf you have the patience for more detailed tax information go to www.irs.gov
Copyright © Roger Chartier 2008
Notes: This is often referred to as the federal mileage rate., and answers questions about federal mileage reimbursement. Federal mileage allowance is the topic. Someone spelled it milage. You ask, what is the federal irs mileage rate standard or IRS mileage rate reimbursement? Read the above. You do have to keep an irs mileage log. |
