If youre in business, youre interested in the IRS mileage deduction rates. The 2005 rates fluctuated because of high gas prices and now the 2006 rates have been released.
Standard Mileage Deduction 2005
In a move not seen for some time, the IRS actually issued two different mileage deduction rates in 2005. Mileage deduction rates are the dollar value per business mile traveled that you can claim as a deduction. For instance, if you traveled 1,000 miles in your vehicle on business in 2005, you can deduction 1,000 multiplied by the designated rate.
For the first eight months of 2005, the standard mileage deduction rate was 40.5 cents a mile. Using our previous example, a person who drove 1,000 business miles in the first months of 2005 would be able to deduct $405.
As we all know, gas prices went through the roof in the last four months of the year. In a tremendous move, the IRS raised the standard mileage deduction to 48.5 cents for business miles undertaken from September through December. This equates to a deduction of $485 using our example.
This increased rate only applies to the time period of September through December. It does not...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
