Business Mileage Rates Increased
Posted by: Carleton Sheets in Taxes, Mileage Rate Increase, Business on Nov 16, 2008.
Sometimes it's difficult to keep on top of legislation changes regarding real estate. For instance, are you aware that the IRS boosted mileage rates for those who deduct the expense of a vehicle used for business-related purposes from 50.5 cents a mile to 58.5 cents effective July 1, 2008 through December 31, 2008? If this applies to you, it could mean less taxes owed to Uncle Sam.
The hike in gas prices played a large part in the increase, but other factors such as depreciation and insurance had a hand in it, too.
Taxpayers have the option of reporting actual costs of maintaining a vehicle for business-related purposes, or using the optional standard mileage rate. Mileage rate deductions also exist for charitable, medical, and moving purposes as well. Medical and moving rates increased from 19 cents a mile to 27 cents a mile. Charitable rates did not change.
So if you are a real estate investor business owner tracking your tax deductions, or an employee who applies for mileage reimbursement from your employer, be sure that you update your records to reflect the new rates.
What other steps have you taken to increase your deductions?
P.S. If you want the inside track to changes in real-estate-related legislation, read the Tip of the Month in the upcoming December issue of Real Profit$® E-News.
