Gary

Is this the same place you had a post here a number of months ago where new young management came in that didn't want to use you anymore?

If so, I guess the laugh is really on them.

Scott

But for tax purposes, you cannot deduct mileage to and from work.

Starting next year, I'll start adding some arbetrary amount for anything over a 30 minute drive. Scott, your way seems very fair and logical, I just like to keep things simple whenever I can.

Glenn

Wow, 50 cents sounds like a lot. I'd like to see their math. Of course, it would depend enormously on what kind of mid-sized car you drive - a Kia, a Toyota, or a BMW.

But let's say you spent $25,000 on your car and you drive it 20,000 miles per year for 4 years. At 50 cents a mile, you would have gotten back $40,000. Let's say you then sell the car for $9000. So you've spent $25,000 and got back $49,000. That's a $24,000 difference. I don't think four years of gas, maintenance, and insurance for a new car could come out to $24,000.

I think the 50 cents a mile figure might be appropriate for higher end cars but not for low to mid-priced cars.

Beakybird

I questioned the 50 cent per mile total cost, too, but then talked to a fellt mamager at Pepsi Company. They use Runzhiemer
to estimate their annual cost of maintaining a fleet.

Insurance costs, property taxes and maintenance charges vary a lot across the country.

Using your example, If you paid $25,000 for a vehicle and sold it for $9,000 four years later, you would have a net purchase cost of
$14,000. Add to that $7,500 for gas, $4,200 for insurance, $2200 for properety taxes and liscensing, $5,000 for interest, $3200 for maintenance and repair and $1100 for miscellaneous (toll fees, parking, etc.).
that brings the total for this example to
over $37,200, or 46.5 per mile.

The variables are business insurance with greater coverage and cost which is required
for employees who use their vehicles on business, the residual value of some vehicles
You may not get $9,000 for the unit, etc.

Runzheimer and other companies are fleet managers and are in the business to know these things.

Kind of makes you rethink those casual 100 mile plus Sunday drives,dosn't it?

Best regards,

Russ

The reason I stick with the 37.5 cent/mile IRS approved figure is because it's easily understood by all my clients, being taxpayers themselves. Any auto travel expense over this is included in my performance fee as just part of the cost of doing business. If clients really feel I deserve more, they'll express it with a generous tip. - Scott