So, here's the scoop…
The Internal Revenue Service has issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
That's good for us real estate investors to know, since all the mileage directly related to our real estate biz is tax deductible…
Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
* 55.5 cents per mile for business miles driven
* 23 cents per mile driven for medical or moving purposes
* 14 cents per mile driven in service of charitable organizations
The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
For you tax geeks like me get the “official” IRS docs here: Rev. Proc. 2010-51 and Notice 2012-01.
Remember, though, you must document your deductions, regardless of the method you choose.
If you need to forms to keep up with your mileage, check out this earlier blog post. You can download forms near the bottom of the post.
AND…for you iPhone addicts … err…users
there's an app for that! Trip Miles is a great little app and will be well worth the $0.99 cost (and it's tax deductible)!!
That's it for now…
Leave your comments and questions below, and…
As always, thanks for reading BillOnBusiness.net!