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2012 IRS Mileage AllowanceBeginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks)
For this year 2012 the tax deduction rate for business miles driven is 55.5 cents per mile the same as the second half of 2011. If you use the Depreciation - Basis Reduction Amount method for 2012 then you get an allowance of $0.23 per mile for a car (not a truck or Van) worth less than $28,000.00 or a truck or van worth less than $29,300.00 You then have the option of deducting using the percentage method whereby you have to save all receipts for parking fees, gas, registration, repairs etc. If you had a catastrophic year, repair wise, or had to park in a pay garage everyday that might warrant keeping all records and possibly using the percentage method. For 2012 charity miles driven are still @ $0.14 per mile, same as 2011. I use the full deduction/ allowance but it is best to keep records for both so that a the end of the tax year you can compare figures to decide which is the better. Keep a log book to track the odometer readings each day. Download and print this FREE PRINTABLE MILEAGE LOG. I was told how mileage was re-created for one day when someone forgot to log the difference between personal miles and business. They went to this website that offers online maps and driving directions and mapped out the trip. Someone I know was audited by Commonwealth of Massachusetts recently and faced a problem because of his keeping a sloppy log book. Apparently even your state can be tough on this. He was waiting to know if he would have to pay a $2.000.00 fine. You can get software programs that are very helpful for tax prep and they are popular and some are quite simple to use. You can look into e-filing and decide if you need professional help or can file taxes yourself. For medical and moving expense the IRS is allowing a $0.23 mileage deduction. For some it is negligible. There are people have to travel for dialysis or chemotherapy on a
regular basis.
It might be vital that they save the money using the deduction. Notes: This is often referred to as the federal mileage rate., and answers questions about federal mileage reimbursement. Federal mileage allowance is the topic. Someone spelled it mileage. You ask, what is the federal irs mileage rate standard or IRS mileage rate reimbursement? Read the above. You do have to keep an irs mileage log. |
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