Mileage Deductions On Your Taxes
We all start out the year determined to keep a notebook in our car to write down all the mileage associated with visits to clients or attendance important meetings. By thend of the month, we’ve been too busy to keep up with it. It is important to maintain records as they will allow valuable deductions on your taxes.
The tax code allows for business related driving to be tax deductible, the key to getting the best deduction is to have accurate documentation. For each trip you need to record the date, the number of miles traveled; any tolls you paid, parking costs paid as well as the reason for the trip.
The easiet method to calculate your deduction uses a ste value for each mile travelled. First, add up all of the mileage, and mutiply it by the set rate appropriate to your circumstances, and then add in the costs involved just as tolls and calculate the cost.
There are other methods to calculation, these con be complicated and it is recommended that you seek professional tax advice with these methods. Leases, purchasing a new car and even having your business out of your home, all offer deduction potential.
This entry was posted on Monday, December 10th, 2007 at 12:04 am and is filed under Deductions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.