The price at the pump is increasing and many of you looking to deduct a vehicle that you use for business purposes. The IRS has made a mid-year change to the standard mileage rate for the final six months of 2011. The rate will increase to 55.5 cents a mile for all business miles driven from July 1 through December 31, 2011. The IRS adjustment comes with the spike in gas prices. You may find yourself better off using the actual expense method to calculate your deduction, but it comes with a commitment to track your expenses. Compare the two ways you can calculate the amount of your deductible vehicle expenses and find what works for you. Or contact your Muckel Anderson tax advisor who can walk you through the process.
Tax & Accounting Blog
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