Tax Deduction for Mileage

A tax deduction for mileage is allowed for each mile driven for tax purposes when using your personal vehicle for business purposes.  The tax deduction for mileage value changes each year on a per mile basis.   It approximates 57 cents per mile.

Nondeductible Expenses in Small Business

Nondeductible Expenses

One of the more significant expenses for the small business owners is income taxes. Since most small businesses are tax pass through entities, it is beneficial to the business to have the least amount of net income in order to reduce the tax obligations of the owner(s). This is achieved by making sure every dollar expensed is deductible for tax purposes.

Cost per Mile – The Basic Formula

Cost Per Mile

In any industry, especially transportation, it is essential for the owner of a business to understand how much it costs per mile to operate his vehicle, trucks or fleet. The formula looks simple and in reality it is; but you must understand the underlying elements to truly appreciate and comprehend the calculation.

Mileage Deduction – New Rate for 2013

Mileage Deduction

The Internal Revenue Service announced the mileage rate deduction for the calendar year 2013 on November 21, 2012. The new rate increased 1 cent over 2012’s rate to 56.5 cents per mile. How do you calculate and use the mileage rate formula for tax purposes? 

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