| With gas prices at an all time high
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| | new cars. Our new car profit margin is
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| before Hurricane Katrina left her mark on
| |
| | at its lowest ever. At this point we're
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| our nation, most Americans were hoping
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| | just glad to sell the car and bring in
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| that gas prices would settle down once
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| | some inventory."Now that gas prices have
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| summer passed. But gas prices have
| |
| | gone through the roof, small business
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| jumped as much as 80 cents a gallon
| |
| | owners are working furiously to dump
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| across the country once Hurricane Katrina
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| | those 6,000 pound gross vehicle weight
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| destroyed the Gulf Coast and impacted all
| |
| | fuel guzzlers they bought only a year or
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| of our lives.While Hurricane Katrina is a
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| | two previously under a tax loophole which
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| horrible tragedy, it's not just affecting
| |
| | allowed small businesses to write-off
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| the Big Easy. Hurricane Katrina will
| |
| | most of vehicle cost in one year.Mr.
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| impact every single American that
| |
| | Brown has experienced this situation on a
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| commutes to work, takes a vacation, or
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| | larger scale than most of us, adding
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| shops online.Company Car vs. Mileage
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| | "People come in to trade their larger
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| AllowanceCompanies and individuals alike
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| | trucks and SUV's with poor gas mileage
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| are now concerned that the federal
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| | for smaller, better gas mileage vehicles.
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| mileage deduction or their company's gas
| |
| | Most consumers are not only so
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| mileage reimbursement will no longer
| |
| | upside-down (owing more on the car than
|
| cover the costs of operating a vehicle
| |
| | its fair market value) but are finding it
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| for business purposes.At the beginning of
| |
| | hard to trade-in these larger vehicles.
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| 2005, the IRS standard federal mileage
| |
| | Not only they are valued less because of
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| reimbursement rate for business use of a
| |
| | gas prices but people just cannot afford
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| personal vehicle (including vans, pickups
| |
| | the fuel that would be needed to maintain
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| or panel trucks) was 40.5 cents a mile
| |
| | these lower gas mileage
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| for all business miles driven, up 3 cents
| |
| | vehicles."Weighing your OptionsYou, too,
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| from 37.5 cents a mile in 2004; The
| |
| | may have to analyze your business vehicle
|
| primary reason for the increase was
| |
| | deduction options, now that high fuel
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| higher prices of vehicles and fuel in
| |
| | prices seem like they're here to stay.
|
| 2004.Christopher Tanis, District Manager
| |
| | You may find that while maintaining a
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| of a restaurant chain in New York State
| |
| | mileage log and claiming a car deduction
|
| travels for business to 5 different
| |
| | or mileage allowance isn't right for your
|
| stores per week. For him, the 2005
| |
| | situation, the IRS will allow you to
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| federal reimbursement rate worked out
| |
| | deduct actual vehicle expenses based on
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| quite well, and he opted for using his
| |
| | the percentage of business vs. personal
|
| personal vehicle instead of using a
| |
| | miles. For those who use their vehicle
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| company car. Now that fuel costs are so
| |
| | mostly for business, minimal personal
|
| high, he's decided to re-examine the
| |
| | usage combined with the burden of
|
| financial feasibility of mileage
| |
| | record-keeping may justify a company car.
|
| reimbursement.Poor Gas Mileage Cars are
| |
| | There's no right answer for everyone.
|
| Losing ValueChris Brown; owner of Auddie
| |
| | Literally, your mileage may vary.
|
| Brown Superstore, an automobile
| |
| | Consider your options and you'll find the
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| dealership located in Florence, South
| |
| | way to steer yourself to the best tax
|
| Carolina, commented "I think [the jump in
| |
| | advantages in these new
|
| gas prices resulting from Hurricane
| |
| | circumstances.Ann-Marie Patero is a
|
| Katrina] is ridiculous because they act
| |
| | freelance writer for Envision Software,
|
| like we're running out of fuel and we've
| |
| | publisher of Consulting Mentor, a website
|
| got plenty."Selling cars, the standard
| |
| | providing Consultant Resources and
|
| expense for selling each vehicle used to
| |
| | Consulting Articles to Consultants world
|
| include a full tank of fuel when they
| |
| | wide. If you're a consultant,
|
| bought a car, once the price hit $2.50 a
| |
| | freelancer, or considering starting your
|
| gallon, Chris starting limiting his fuel
| |
| | own small business, the resources at
|
| allowance to $10. Chris explains, "Some
| |
| | Consulting Mentor will help you improve
|
| cars take $80 worth of fuel to fill up
| |
| | your effectiveness, profitability, and
|
| and on a new car we're lucky if we make
| |
| | overall success.
|
| $80 in profit on them -- especially the
| |
| |
|
