Discussion:Mileage rates
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Discussion Forum Index --> Advanced Tax Questions --> Mileage rates
Discussion Forum Index --> Tax Questions --> Mileage rates
| 11 June 2008 | |
| I've tried to find information on any potential increases for 2008. Does anyone know if this is in the works? | |
| 11 June 2008 | |
| I don't even know with certainty what the current rate is, to lazy to look. Is it $.505? Also, I have never thought to ask this before but here goes. Lets say a client drives a Honda Accord, and takes the .505 mileage rate. What do you do if the client is driving a Ford F350, or a Motor Home? Do they still get $.505? Maybe its time to have clients keep actual expense records again. | |
| June 11, 2008 | |
| 50.5. Wondering if Congress will do one of those midyear increases. | |
| June 11, 2008 | |
| Oh, and yeah, my policy has been that if you drive an economical vehicle, I like mileage. For all others, actual. | |
| 11 June 2008 | |
| How about Toyota Prius and the ole Honda Insights? 40-60 MPG!!! | |
Death&Taxes (talk|edits) said: | 11 June 2008 |
| IRS is permitted to raise the allowance without Congress.
Whoa Nelly, JR. Wife puts about 32-33,000 miles on the car in a year. If this were all business, that's a deduction of 16,797 on 33K. Between insurance and repairs, we spend less then 3200 a year, far less.....that is a lot of gas to spend no matter how many miles a gallon she gets [she is near 30mpg]. She'd have to be spending over 13K on gas to make it even, or at 4.50 a gallon, that would be over 3000 gallons, or about 11 mpg.....like those Hummers in the used car lots I see dotting the landscape. Economical or gas guzzler, the criteria should be as always: actual expenses on low mileage autos where the insurance cost and repair cost per mile are high. On high mileage cars, do the math. What has happened with autos today is that they run so much longer without major dollar shop vists, and tires last far longer, if far more expensive. Gas here is still under $4. | |
| 11 June 2008 | |
| The biggest problem I have is getting those that use vehicles for business to actually keep some records. Granted mine is a small practice and may not be representative. Yet most I do taxes for that deduct business vehicle expenses just don't keep any actual expense records. I am thinking of sending out a request that they consider and start doing so. Then if they don't at least I have told them. Gas in South Texas is under $4 for 87 octane, and we usually pay way more than the rest of the countyr. I think it is something about state taxes at the pump being higher than the rest of the country due to costs of monitoring all the refineries on the Gulf Coast. We produce the gas, and have to pay more for it right here. | |
| 11 June 2008 | |
| Ho ho, Lancer, you're not paying more, you're paying less <G>. Here in San Diego I've seen $4.899 for regular. I paid $4.339 at Costco yesterday and that was cheap. The Thrifty (usually a cut-rate station) near the freeway is $4.719. According to sandiegogasprices.com, the average price of unleaded regular in San Diego today is $4.524.
We are closing in rapidly on $5/gallon gas. Won't be long at this rate. | |
| June 11, 2008 | |
| DT, don't I recall that there's a max mileage figure where the rate changes to account for the depreciation that's used up? So you accelerate the deductions, but don't get more over the life of the auto than anyone else. | |
Death&Taxes (talk|edits) said: | 11 June 2008 |
| That was years ago, JR....maybe before 1994? I am going by Quickfinder.
I do recall an audit adjustment for this back then. At present, and since 1994, you reduce the basis (but not below zero) by the depreciation factor. I agree with Lance: all clients can give you the business mileage, but the total mileage?????? | |
| 11 June 2008 | |
| Business mileage, total mileage. All my clients think they're the same! | |
| 11 June 2008 | |
| My hubby filled up on reg when we were in NJ. Gas was a bargin at 3.89/gal. Here in NY it's 4.29 at Hess and that's the cheapest around. | |
| 11 June 2008 | |
| Katie-
My daughters have lived in LA and SF for years, have left and returned. I never count CA cost of living when talking about the rest of the country. I swear I don't know how you do it, the cost of living is so difficult in CA. However, all I need to do is visit, as I did LA last week, and the weather is so beautiful. It must be worth it to live there full time. | |
| 11 June 2008 | |
| Yes, we call it the sun tax <G>. It helps to have bought a house in 1964 and enjoy the benefits of Prop. 13. It's been years since I could have afforded to buy my own house.
But we're getting off topic here ... <G> | |
| June 11, 2008 | |
| We topped $5 in Hawaii last week, but that was on Lanai. (There's only one gas station on the whole island.) It went up 40 cents over night there. I'll bet we'll be at $5 on Oahu before the end of the year. | |
Michaelstar (talk|edits) said: | 11 June 2008 |
| Katie - all of us here are in that boat! I only bought my home 9 years ago and I could not afford to buy it today which is a bit frustrating in my mind.
Gas here will be at $5.00 a gallon in San Diego by July 4th if not before - darn! The multiple trips to Home Depot are a thing of the past....... If my memory serves me right - the mileage rate has only been adjusted mid year a couple of times. It certainly will be adjusted sometime here for 2008 in the near future. | |
| June 11, 2008 | |
| Michaelstar, some of us actually are not in that boat yet. We keep swimming toward it, but it just goes farther away.
I hope you're right about the rate adjustment. | |
| 11 June 2008 | |
| Gas is an average of $4.50 a gallon or more here in Sacramento too. But our housing has become more affordable! <G>. Or frown depending on whether you are buying or selling. Heck, I have a 1999 Accord and I've taken actual in the last two years. Had some repairs that were unusual,but my depreciation is low... | |
Dante layton (talk|edits) said: | 24 June 2008 |
| The new rate is 58.5 cents. | |
Seaside CPA (talk|edits) said: | 24 June 2008 |
| Effective July 1, 2008. | |
Death&Taxes (talk|edits) said: | 24 June 2008 |
| For miles driven after that date, not reimbursements made after that date for miles driven from January-June. | |
| 24 June 2008 | |
| Business rate 1/1-6/20/08 .505/mile 7/1-12/31/08 .585/mile
Deductible moving or medical expense 1/1-6/30 .19/mile 7/1-12/31/08 .27 Charity work remains at .14/mile. Congress must pass a law to change it. Reported in Newsday 6/23/08 | |
| 24 June 2008 | |
| Sorry for the typo. I meant 1/1- 6/30/08
There s/b a way to edit your own posts. | |
| 24 June 2008 | |
| there is
see that tab at the top of the page that says 'edit this page' Barb? just be careful to only edit your own posts | |
