Jun
24
IRS Miles Finally Starting to Catch Up – 58.5 cents
June 24, 2008 | 1 Comment
It seems that the IRS finally recognized that gas is having a major impact on business finances. The mileage deduction was increased to 58.5 cents per mile.
This is also a ver interesting reminder of what costs to drive. The mileage deduction is not a gift from Uncle Sam, it is a reality check. Between vehicle depreciation (which alone is 15 to 20 cents per mile – check it on Edmunds or KBB), gas (which on a 20mpg car is around 20 more cents), insurance (around 7c), and maintenance/repairs (around 10c more), you end up with no compensation for all of those hours you spend sitting in a traffic jam.
It is an interesting reminder that everytime that you have to make a decision of whenether to drive, train, bus, or use an airplane you should consider the total trip cost. Calculating the driving one is easier now, as you can multiply it by the governmentally recognized 58.5 cents. It also helps to calculate savings when you have to compare a product in two different reailers that are located miles appart.
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