Sorry I didn’t blog on Memorial Day – had to clean out my father-in-law’s house (he is moving and sold his house with a 30 day escrow). I wish we had a picnic instead. Back to the blog:
Is it better to take actual auto expenses or the IRS Mileage rate for a business deduction?
It will depend on:
*How accurate is your mileage log? (You have to start with something)
*How many miles did you drive? (Sometimes more miles works in favor of the mileage rate)
*Are you leasing or buying your car? (Leasing can sometimes give you bigger deductions)
*How old is your car? (The mileage rate can yield bigger deductions on an older car)
Perhaps you should ask your tax professional (or me) and he can look at your individual situation and see which works best.