When claiming mileage as a deduction you will have the choice of deducting either the mileage, or your actual vehicle expenses. There are different requirements for each that you’ll have to keep in mind when filing.Make sure you claim the current mileage tax rate because it changes every year.
For example, the requirements for the mileage deduction are as follows:
Claiming the Current Mileage Tax Rate
Also, depending on the type of business there are different IRS mileage rates that apply for that specific use. For example:
However if you are wondering which deduction will benefit you more, you will have to keep accurate records of both your mileage and actual vehicle expenses.
In deducting actual vehicle expenses the following expenses would apply:
Once you have calculated the IRS mileage rate tax deduction and the actual vehicle expenses then you can make the choice of which to deduct on your taxes. Keep in mind that you may only deduct one or the other. The larger of the two amounts will benefit you more.
Visit TurboTax Online today for more information regarding claiming the current mileage tax rate. TurboTax Online has live support service that will answer any questions you may have.
