The silver lining to the high gas prices

By
Real Estate Agent with Maximum One Greater Atlanta Realtors

Until now, I had been tracking my mileage and taking a per mile deduction on my taxes for the real estate business related miles that I drive.

I had a thought the other day and called my accountant to verify.  It looks like even though gas prices have escalated 400% in the past year, the IRS has only raised the per mile deduction by a couple of cents.  Therefore, it has become MUCH more advantageous to take a deduction for actual auto expenses instead of the per mile deduction.

Talk with your accountant or check it out on your own; but it seems like this change could have a significant impact on my bottom line for the year and is a welcome bit of good news in these otherwise tough times.  Now I don't feel as bad about paying $5 / gallon since at least it's $5 / gallon tax deductible.

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Tags:
2008 mileage deduction rate
real estate agent tax tips
mileage deduction vs actual expenses

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Rainmaker
646,544
June Piper-Brandon
Piecing Dreams One Home at a Time
Century 21 New Millenium

I have claimed actual auto expenses for a long time on my taxes.  It really works out well for me.  I have a home office and drive to my office 27 miles away and most of my driving is business related, I stop for things on my way to or from business. 

June 17, 2008 05:19 PM
Rainmaker
487,038
Lorraine or Loretta Kratz
Certified Negotiation Consultants
Crescent Moon Realty, Inc. & Land N Sea Auctions.

Thanks for the tip.

June 17, 2008 05:20 PM
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Rainer
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Matthew Share

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