| Getting out and conducting business is a basic | | | | There are a couple of things you need to keep in mind |
| necessity for any business person these days even | | | | with this deduction. The first has to do with when you |
| with the easy of digital communications coming on like | | | | can claim it. The 55 cent rate applies to your 2009 |
| mad. Fortunately, Congress knows as much and tax | | | | mileage, not your 2008 mileage. This means that you |
| law has long allowed for the deduction of costs | | | | can only use this rate when you sit down to calculate |
| related to driving around on business. | | | | your 2009 taxes in the first quarter of 2008. What |
| If you are looking for a simple tax deduction that can | | | | about for the 2008 year? That rate is 50.5 cents. |
| really make a dent in your tax liability, the business | | | | A second cautionary note has to do with unwanted |
| mileage deduction is a pretty good choice. The | | | | attention from the IRS. There can be a temptation to |
| deduction is organized in an easy and logic way - a | | | | expand a bit on the miles used in calculating this |
| real shocker considering we are talking about a tx | | | | deduction. Don't. The IRS is more than aware of the |
| issue. Regardless, one just multiplies your total business | | | | temptation. When it does audits, it will ask for evidence |
| mileage for the year by a mileage deduction rate | | | | of the mileage being incurred. This means you need to |
| issued by the IRS. The resulting total is your deduction | | | | keep a log detailing the mileage. If you don't, the entire |
| amount. | | | | deduction may be tossed out. |
| The IRS has just announced the business mileage | | | | The business mileage deduction is great because it is |
| deduction rate for the 2009 tax year will be 55 cents | | | | one of those deductions you can take year after year. |
| a mile. This is an increase of 4.5 cents over the 2008 | | | | To its credit, the IRS has also shown a tendency |
| figure. So, what does this mean? Well, let's assume | | | | recently to adjust it to match changes in gas prices if |
| you drive 5,000 miles in 2009 on business. You would | | | | things start getting crazy. With falling gas prices, we'll |
| calculate your tax deduction by multiplying 5,000 x 55 | | | | have to hope the IRS does not adjust the rate down in |
| cents to come up with a total of $2,750. Any way you | | | | 2009, bit it might so keep an eye out for any changes. |
| slice it, that is a very nice deduction. | | | | |