What is Tax Relief on personal mileage
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skippy
Apprentice
Joined: 13 Mar 2005
Posts: 7
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 Posted: 01/07/08 - 09:44 Post subject: |
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| hello! I am sole proprietor using personal vehicle for business activities? Could you please inform me about some issues regarding mileage? What is Tax Relief on personal mileage? Considering the fact of tax deduction what’s better: actual expenses or the standard mileage rate? I am thanking you in advance! |
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ring
Apprentice
Joined: 04 Dec 2005
Posts: 6
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| Posted: 02/05/08 - 23:46 Post subject: |
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| For most sole proprietors vehicle expenses present an important deduction. It depends on number of miles you have driven. The first thing you have to know as the sole proprietor is the number of business miles during the tax year. And then you’ll figure the standard mileage rate deduction. The second one is to know the total of those expenses and then you’ll figure the deduction for actual expenses and determine proportion of them. You can do it determining a ratio between the personal miles number versus business miles number. The first year it’s much better to put a vehicle into service rather than actual expenses. |
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