How do you determine mileage charges.

[DarisMulkin]

Just wondering how you determine mileage charges? How far will you go before there is a mileage charge.
Years ago the workroom I worked for had a map of Michigan that had circles in equal increments and had the rate for each increment.
Now I will go about 25 miles before a charge. Then its .50 per mile to and from.

Daris

 

[Floorist]

About 20 miles. But 99% of what I do is within 2 miles of my house.

 

[highup]

Ends up around .50 cents a mile. Most towns are 23 to 27 miles away, so 25 to 30 miles away is $35.............. 50 miles is $70
I figure is my $35 per hour rate, 'cept I pay for fuel. On those shorter trips, it costs me about $17 for fuel, so I end up just under $10 per hour driving time.

 

[Ernesto]

Travel charges could make a prospective client go elsewhere for labor.

 

[highup]

You mean they don't want to pay me $10/hr to listen to Rush?

 

[Dan]

I got 70 cents per mile, round trip, yesterday over to the Fayetteville area (147 miles one way) on top of my inspection fee. They didn't bat an eye at the mileage. Got another Friday to Joplin, MO about 164 miles one way.

Doesn't the uncle sam allow like 50.5 cents now? It's not just gas, there's wear and tear also.

 

[Ernesto]

Arn't you supposed to subtract the mileage fees from your work vehicle when deducting mileage charges of fees on your tax form?

 

[Incognito]

I got 70 cents per mile, round trip, yesterday over to the Fayetteville area (147 miles one way) on top of my inspection fee. They didn't bat an eye at the mileage. Got another Friday to Joplin, MO about 164 miles one way.

Doesn't the uncle sam allow like 50.5 cents now? It's not just gas, there's wear and tear also.

*************************
Kind of a tricky and complicated issue. It's always creeping up but last I checked the IRS rate was 50 cents or so per mile. What you can charge above that would be considered income and therefore taxable if you don't have receipts. If you can charge 50 cents, write off 50 cents and then travel for much below that cost it's tax free income. If you feel bad about evading taxes it's always an option to document and declare actual costs. You can do that I believe even if those costs would exceed 50 cents a mile. I'm pretty sure about that but you could get "red flagged" if your numbers don't line up with the computer's norms.

When the IRS figures that 50 cents it's based on a comprehensive average that includes high level sales staff, service fleets and Joe Blow using his car/truck for anything work related. So the dude with a 20 year old vehicle, fairly good on gas and he does his own maintenance and repairs can make out very well at 50 cents a mile. The guy with the brand new massive Turbo Diesel truck on borrowed money insured to the hilt is typically going to be spending every bit of that 50 cents and ought to be saving those receipts and doing the cost comparisons--------probably need an accountant when you start getting into depreciation and such. That's why they use the 50 cent figure, to make life simple for us peons who can't afford a good tax accountant.