Do you use the mileage rate to deduct your vehicle?
You think the IRS mileage rate is easier. That’s probably not true, as you will learn in this article.
You might think that the IRS mileage rate overcomes your lack of expense records. It likely does not. Moreover, you probably have most of the expense records you need to use the actual-expense method, as you will learn in this article.
You might think that the IRS mileage rate overcomes your lack of a mileage log. The standard mileage rate does not help you here. There’s no difference in the mileage log you need to prove your deductions with either the actual-expense or the IRS mileage-rate method.
You might find that the mileage rate puts more cash in your pocket. Now that’s a valid reason to use the mileage rate. But how would you know whether the mileage rate puts more after-tax cash in your pocket than does the actual-expense method?
We give you big-time help with that after-tax cash answer in this article.
... Log in to view full article.