Mileage Rates Change July 1St,2011

[esavvymom]

Just got this info from "my" tax-guy:

*****************

NOW IT IS OFFICIAL!

Later this week you will read in the papers that the IRS will increase vehicle-use rates as of July 1.

The NEW rates will be 55.5¢ per mile for Business use, 23.5¢ per
mile for Moving or Medical use, and 14¢ (unchanged) for charitable use.

The first half of 2011, ‘OLD’ rates were 51.0¢ per mile for business use,
19.0¢ per mile for moving or medical use, and 14¢ for charitable use.

CAUTION: THE NEW RATES ARE NOT ‘RETROACTIVE’

• All business use during the first half of 2011 will be deductible at the “old” rates.
• Separately, all business-use miles after June 30, will be deductible at the “new” rates.

 

[aried]

Thanks for letting us know, didn't know that.

 

[esavvymom]

I usually don't know until the end of the year when I enter my tax info/deductions, because I look it up. But I got advance warning this year. So figured it would save some time by entering it into P3 correctly from July 1st forward!

 

[chefa]

Bobbi,

Do you get all your numbers for tax time from P3 or do you export it to something like Quicken?

 

[byrd1956]

Thank you!

 

[esavvymom]

Bobbi,

Do you get all your numbers for tax time from P3 or do you export it to something like Quicken?

Do you mean do I use P3 for tracking my expenses? Yes. Then I run a report and hand it to my DH who does taxes with Turbotax. As far as how do I know the rate, normally I just google it when I start entering the mileage, but I took a tax course for home business and I still get emails from him.

 

[winklermom]

Thanks for the info!!! Every little bit helps, especially where taxes are concerned.

 

[ShellBeach]

just bumping, remember to change your mileage rate in P3.
Thanks to bobbi for the heads-up!

http://www.irs.gov/pub/irs-drop/a-11-40.pdf

 

[Teresa LM]

I am in the spot to edit the categories but how exactly do we put 55.5? My old rate was showing as .51. Was that correct? Do we just change it to .55? An accountant, I am not!

 

[esavvymom]

In P3, go to the Income/Expense, or just click on the button to Add a New Expense/Income item. Then click on "Edit Categories". That is where you can add new categories, make changes, etc. Click on the one for Mileage. You'll be able to adjust the rate there. It will then input the correct amount for all entries going forward.

 

[Teresa LM]

I figured out where to change it but not how to change it to 55.5? I'll have to mess with it tomorrow or sometime soon. I don't want to forget to do it.

 

[esavvymom]

I figured out where to change it but not how to change it to 55.5? I'll have to mess with it tomorrow or sometime soon. I don't want to forget to do it.

If you follow the steps I gave you, it will take you to the place you need to change it. You just change the mileage rate number to reflect the new one. It will affect all entries going forward.

Good luck!

 

[BethCooks4U]

If you follow the steps I gave you, it will take you to the place you need to change it. You just change the mileage rate number to reflect the new one. It will affect all entries going forward.

Good luck!

While I do enter my miles in P3 and print off the expense report for reference and recordkeeping, I never bother changing the tax rate $ amount in P3. When I do the taxes (we use turbotax) I just enter in the mileage. The program calculates the amount the deduction is. I haven't seen a need to worry about it.

 

[ShellBeach]

I am in the spot to edit the categories but how exactly do we put 55.5? My old rate was showing as .51. Was that correct? Do we just change it to .55? An accountant, I am not!

Just type in three 5's after the decimal point.
.555

I like it being in P3 because of the nice year-end report P3 can do for income & expenses.

 

[Teresa LM]

Thank you ShellBeach. That's what I ended up doing, hoping it was right. I have been trying to put everything into P3 also. Do you all put the actual odometer reading or are you just putting in the miles? I've been doing the odometer but it's kind of a pain to remember to write it down.

 

[pampered1224]

What I have done for the last 6 years is I go out to Yahoo maps or Map Quest, type in the beginning,(mine), and ending,(Host), addresses and print the results. I then pop them into a folder. Each map tells you how many miles. I simply double that when I record the miles in P3. My tax guy at H&R Block says they are submittable to the IRS if you get audited. (and I never have been) So I do not keep an odometer log. You,re right in that it is a royal pain.