Details of the IRS mileage

IRS mileage rate from January 2009 can be used to determine how much you should be allowed to claim as a deductible expense for operating a car or a vehicle for business use, for medical use or for moving purposes. 

Well, it means that the IRS mileage to run a car for business use is currently valued at 55 cents / mile driven. 

Somehow, this figure drops to 24 cents per mile traveled any medical purposes. You can claim deduction of 14 cents per mile driven in service of any charity. 

With the price of fuel slowly creeping up again, making the most of requiring the deductible costs of vehicle use, does the IRS mileage rate can be very convenient for many people. 

When you calculate your deductible expenses, and you're factoring in the IRS mileage rate for the entire tax year, you must remember that there are two ways to calculate the deductible costs of vehicle. 

The first is IRS mileage rate and this is by far the simplest method. The total fifty-five cents per mile driven business purpose was established by basing the estimate on the surface, and miscellaneous costs of running a car. 

To most people use the IRS mileage rate can help reduce your tax liability and increase the amount you could potentially require the deduction. 

But the alternative for some business people is to calculate the actual cost of operating a vehicle throughout the year. That means keeping an accurate logbook noting all driven miles. It also means keeping your receipts for fuel and service. Registration and insurance costs also included, along with other routine maintenance or repairs that may arise during the year. 

Record as many expenses during the year can be somewhat cumbersome paper work side of things and so many people prefer to simply use the calculation to the IRS mileage rate. You may find that your deduction out weight the amount released automatically by the IRS mileage rate if you're willing to put up a bit uncomfortable to keep receipts to actual costs. 

The best way to determine if you must use the IRS mileage rate or actual cost basis is to either talk to your accountant or trying to keep a running cost of your total expenditure for the whole three months and then multiplying that figure by 4 to give you an estimate of how much you can claim for a whole year. If you are unsure of which way to go, call the IRS and they will be able to assist you with any questions.