Friday, December 03, 2004

IRS and GAS Prices

The silver lining to rising gasoline prices is a bigger tax deduction for businesses. The IRS has raised the milage deduction for business use of a car from 37.5 cents a mile to 40.5 cents. That's the biggest one year change ever. It takes effect January 1.

It could make driving more economical than flying. A 300 mile roundtrip will mean a reimbursement of $121.50.

You also get higher deductions for moving expenses and travel for medical care. (IRS & Al's Morning Meeting)

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