There has been a recent increase in the standard mileage tax deduction rate. It has increased from the previous 48.5 cents per mile to 50.5 cents per mile.
The new standard deduction will include cars, vans, pickups, and or panel trucks. The IRS allows you to deduct your auto expenses for visits to customers and clients as well as any business appointment that is away from your usual workplace. If you are a business owner then you may also deduct expenses when traveling to pick up supplies.
Standard Vs. Actual
You can decide to either take the standard deduction mileage rate or you can deduct the actual vehicle expenses. This would include the following items:
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Gas
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Oil Changes
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Tires
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Repairs & Maintenance
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Insurance & Registration
If you decide to go with the actual expense deduction you may not change at any point in the year to the standard but you may change from standard to actual. The most important thing to consider in making the decision to use either actual or standard would be to take a look at the number of miles you drive each year.
If you travel a large amount of miles then the standard deduction is probably a better choice for you. The actual deduction can yield a larger deduction but is also more time consuming. Every business trip must be logged with mileage, date, and purpose.
To help you maximize your mileage tax deductions please visit TurboTax Online. TurboTax Online offers detailed instructions on claiming all of your deductions.
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