New IRS Mileage Reimbursement Rate: 50.5¢/Mile

[baychef]

Beginning January 1, 2008 - the new IRS mileage reimbursement rate is 50.5 cents per mile.

 

[RebelChef]

Yay! With gas prices so high, it'll sure help. Thanks for the update!

 

[heat123]

What is it currently .46c?

 

[Kitchen Diva]

so how does that all work out for us? Does someone cut me a check for all those miles I put on my car? I'm have no idea how having my own business will help...I'm just hanging on to every receipt and loggin miles so when I go to get the taxes done I'll at least have proof of my expenses...now whether or not they'll be organzied is another thing, or should I say a squiggle thing? LOL

 

[RebelChef]

It's 48.5 right now. Not a big increase but anything is better than nothing.

 

[Gina M]

No you don't get a check for your mileage - you just claim it on your taxes as a deduction.

 

[chefann]

Kacey, you'll get to fill out a schedule C this year - profit and loss from a business. There's a field on there for mileage. Basically, you multiply the number of business miles you drove this year by the current mileage deduction (48.5 cents, as posted) and enter that in the field. That's the cost of those miles that counts as a business loss.

 

[RebelChef]

Just know the IRS will audit you if it seems an outrageous amount of miles so keep your mileage log up to date. They got us last year but dismissed it because I had records. Also, when you have any repair work done on your vehicle, keep the receipts that show the vehicle's mileage because they'll ask for that as additional proof. You may never need it but you never know.

 

[lkprescott]

Beginning January 1, 2008 - the new IRS mileage reimbursement rate is 50.5 cents per mile.

Yeah! Thanks for the info!

 

[baychef]

Yay! With gas prices so high, it'll sure help. Thanks for the update!

I wish gas prices had only risen 2 cents within the last year!!!!:cry:

 

[Kitchen Diva]

Just know the IRS will audit you if it seems an outrageous amount of miles so keep your mileage log up to date. They got us last year but dismissed it because I had records. Also, when you have any repair work done on your vehicle, keep the receipts that show the vehicle's mileage because they'll ask for that as additional proof. You may never need it but you never know.

WellI have a tricky situation because for almost 8 weeeks (not consecutive) my new car was in the shop, so I had a courtesy car from the dealer. To make a long story short, Pontiac just bought my car back from me a week and a half ago, so I have a brand new car now.

I didn't keep the best track of the odometer miles becasue I was literally in a different car for every show I drove to. I just kept track of actual miles. from my house to theirs and back again... I easily averaged 60-85 miles per show! Not to mention all the times I drove to my directors house for training, and help, etc... can I count that? Can I count trips to the office supply store? The post office?
What about writting off bandaids for all the paper cuts I'm going to get from all this additional paperwork?

 

[chefann]

Any trip that is primarily for business reasons, you can deduct: training, to post office, to shows, to grocery store. I don't usually bother except for shows and training, mostly because I try to run errands in clumps or on my way to/from work and then it gets confusing.

 

[jrstephens]

I am like Ann. I use mainly my show mileage. I do use milage if I have delivered something or know that the trip was primarily for PC. Most of my grovery trips are done for the house and I just pick up PC stuff.

I am excited to deduct $800 for my laptop!!! And I bought a new printer this year. Question? Should I just deduct half since I do use it for personal stuff too. I did buy the laptop so I could take it to shows, otherwise I would have just stuck with my desktop.

 

[RebelChef]

It depends on your business income on how much you can deduct. There can be limits. I've never deducted equipment because if it's very expensive, you may have to claim a percentage each year for 5 or 7 years. Then if you get a new one or quit the business, you may have to show how you disposed of the equipment. Just one more thing with the IRS that's a major pain. If you have a regular tax preparer, he/she should know what's the best route. I strongly advise against Jackson/Hewitt or H&R Block. They give wrong information alot. Find someone you can trust to go to every year. That's just my opinion but it's from experience. Bad experience! lol

You can find out more at Internal Revenue Service Search for Topic 587

 

[baychef]

What about writting off bandaids for all the paper cuts I'm going to get from all this additional paperwork?

Well, at my full time job, I told my boss that we were going to start a class action suit against the school because many of us women must sit to do our jobs and our butts are getting bigger. We feel we are subjected to bigger butts because of our job demands. I think his response to me was...you think your office is too warm now? It will get so warm in there, we will melt your "problem" away!!