For your tax burden this is a nice deal! Your mileage deduction or allowance for business miles for 2017 is very good.
2013 it was 56.5 cents per mile.
2014 it was 56 cents a mile.
2015 it was 57.5 cents per mile.
2016 it was 54 cents per mile.
2017 it is 53.5 cents per mile.
There are a few rules to qualify for the allowance or deduction.
The price we pay per gallon for gasoline or diesel is a major factor in determining whether we go that way for a deduction.
As the prices for fuel get higher and the mileage rate gets lower we tend to get a less bountiful allowance.
You should know the basic rules like using a mileage chart to log your business miles for the deduction as the IRS will want to see a definite log of the info if they decide to question you.
The Mileage Log
Here is a link to a free Mileage Log to record the miles that you are driving from odometer start to odometer finish for each trip. Download a free mileage log from this website.
Are you a “Sole Proprietor?”
Those who are a sole proprietor and have a new vehicle or a newer but used vehicle you can start now.
If you used that vehicle for the Actual Expense deduction in the past you can’t.
A sole proprietor is someone who is in business for themselves.
You would have to give a payer a filled out W9 form if the amount is more than $600.00.
The payer to you has to send you a 1099 form at the beginning of the year stating how much they had paid to you.
If you have any more that 4 vehicles being used on the road at the same time, you can not use the business mileage deduction. You can have 5 or 6 or more registered for business use, but can not use more that four of them at one time for mileage allowance.
There are some interesting points about this .
You can take parking as a additional deduction but not fuel expense. Read the details.
Here are some deductible expenses.
l. Applicable registration fees and any taxes. (By the percentage of business use)
2. Parking fees and tolls. (During business use)
3. Loan Interest that you might have on the car. (By the percentage of business use)
You can not deduct:
1. Actual auto expense.
2. Lease Payments
3. Depreciation as a separate deduction.
Here is a website with great detail about the mileage deduction