TaxMan123.com

By Roger Chartier

United States of America IRS Tax Information

2018 and Past Mileage Allowance or Mileage Deduction

We have the latest information on the rate changes here.

For this year 2013 the tax deduction rate for business miles driven is $0.56.5 cents per mile.
For this year 2014 the tax deduction rate for business miles driven is $0.56 cents per mile.
For this year 2015 the tax deduction rate for business miles driven is $0.57.5 cents per mile.
For this year 2016 the tax deduction rate for business miles driven is $0.54 cents per mile.
For this year 2017 the tax deduction rate for business miles driven is $0.56.5 cents per mile.

For this year 2018 the tax deduction rate for business miles driven is $0.54.5 cents per mile.

The IRS wants you to keep accurate and specific mileage records. To analyse the way your business is fairing you should be doing this in any event.. You need them for tax prep, and you have to differentiate between your business, personal, charity and moving miles.

Decide Which Method You Will Use

You may take either a business vehicle tax deduction with receipts for all expenses (the depreciation method using a basis reduction amount) or mileage deduction.

If you use the Depreciation - Basis Reduction Amount method for 2013, then you get an allowance of $0.24 per mile for a car (not a truck or Van) worth less than $28,000.00 or a truck or van worth less than $29,300.00
You then 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 every day that might warrant keeping all records and possibly using the percentage method.

For 2013, 2014, 2015 and 2016 charity miles driven are still @ $0.14 per mile, same as 2012.

For 2013 moving and medical miles driven are @ $0.24 per mile.
For 2014 moving and medical miles driven are @ $0.235 per mile.
For 2015 moving and medical miles driven are @ $0.23 per mile
For 2016 moving and medical miles driven are @ $0.19 per mile.
For 2017 moving and medical miles driven are @ $0.17 per mile.

For 2018 moving and medical miles driven are down to $0.18 per mile.

It had been down for 2011 although in, 2009, it was $0.24.

The charity, medical and moving mileage deductions, are not as much of an advantage.

Depending of the cost of fuel, the business miles seem to be more favorable than depreciation unless you just bought a brand new vehicle and don't drive many miles.

I use the full deduction/ allowance, but it is best to keep records for both so that a the end of the tax year you can compare figures to decide which is the better.

Keep a log book to track the odometer readings each day.

Download and print this FREE PRINTABLE MILEAGE LOG.

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.
 
Someone I know was audited by Commonwealth of Massachusetts recently and faced a problem because of his keeping a sloppy log book.

Apparently even your state can be tough on this. He was waiting to know if he would have to pay a $2.000.00 fine.

You can get software programs that are very helpful for tax prep, and they are popular, and some are quite easy to use.

You can look into e-filing and decide if you need professional help or can file taxes yourself.

Medical and Moving

For medical and moving expense, the IRS is allowing a $0.23 mileage deduction for 2015 and a $0.235 mileage deduction for 2014. For some, it is negligible. There are 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

Stayed at @ $0.14. It 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.