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by Roger Chartier

Business miles deduction for 2017

Hui-Ling reddish car - www.MileageDeduction.bizThe IRS calls it a mileage allowance so we refer to it either way here.
In the year 2017 the mileage allowance is $53.5 cents per mile.

That is excellent as the cost of gasoline had dropped dramatically and the mileage allowance for this year is up by a penny and a half. In 2016 we had an allowance of 54 cents per mile - and in 2015 it was 57.5 cents per mile for business miles driven.
Business miles driven in 2014 were given the allowance of 56 cents per mile.
This is an decrease of 1/2 of a cent from the year - 2013.

To get the allowance there are some rules, I will discuss a few of them here.

First you can deduct 2 ways, by mileage or by other costs. I prefer mileage in my case because I have a car that is paid for, and the gas is the big expense.

Determine the condition, and whether you have a loan on your vehicle, the mileage deduction for miles driven could be more to your advantage for tax purposes.

You have to look at the alternatives

With the Vehicle Depreciation method:

If you have a vehicle that is paid for, cost nothing for an auto payment, and has only has a low insurance cost, this could be best for you. It gets better, when you get more MPG or Miles Per Gallon.

Mileage Log

Use a mileage log similar to the one that is free to print on this website. Keep track of the trips and miles for the IRS.

The fact that I will drive 120 miles each way to a job that I do on occasion in the end gets me a deduction or allowance of 240 miles. I drive to many different jobs, and this pays off.

240 miles X 57.5 cents per mile = $138.00. That is a nice allowance since the gas is cheaper than last year per gallon here. Realistically it costs me the most 11 gallons and at the current price of $3.00 a gallon it is about $33.00 for the whole trip back and forth.

This means that I am getting an advantage of $138.00 - $33.00 = $105.00 to me - for free!

Really free?

Well almost for free considering the cost of oil every 2 or 3 thousand miles, the cost of insurance and the actual car cost divided up by the long number of years that I have owned it I am still quite a way ahead with the allowance.

If you have a vehicle that sucks up gas at say 8 miles per gallon, you can see how disadvantageous it starts to get.

Use the cheapest fueled allowable vehicle that you can get and save money as long as you use it for business.

Now how about an electric car...a good idea if the fuel costs are lower than gas or diesel.