05 Jul IRS Increases Rate for Business Mileage Deductions
If you use your personal vehicle for business purposes, we’ve got some great news to share! The Internal Revenue Service recently announced that as of July 1 you will have the ability to deduct more for each mile driven for business purposes – a total of $0.55 per mile.
According to the IRS, their rationale for change was a result in rising tax prices and the toll the prices are taking on Americans who drive frequently for business reasons. Traditionally, the IRS reviews mileage deductions towards the end of the year and implements the changes in the following year. Given the current economic conditions, they decided to push the adjustment date forward. Their hope is that this increase in deductions will assist in balancing the increase in gas prices.
Although mileage write-offs are an excellent way to reduce taxable income, one common challenge often is figuring out how to keep track of mileage throughout the year. To help, we’ve put together a brief list of applications that might assist you in staying more organized.
MilesPerGallon: This application is only available for the iPhone. It allows users to track mileage for more than one vehicle and generate reports – two functions that can be valuable once it comes time to file your taxes.
Drivers Log: This application is only available for Android phones. It’s simple interface allows you to track miles and also export them to a Google spreadsheet for reference.
Trip Cubby: This iPhone application allows you to track mileage in a traditional way, but also saves frequent trips. This function allows you to replicate a trip without having to enter information time after time – a huge time saver.