New 62.5 Cents Mileage Rate

The IRS noticed that average gas prices across the United States exceeded $5.00 a gallon and took action. Small businesses that qualify to use and do use the standard mileage rate can deduct 62.5 cents per business mile from July 1 through December 31, 2022. That’s up...

Know These Four Magic Business Mileage Rules

When you know the rules related to business mileage, you protect yourself in the event of an IRS audit, and pay less tax.   Take Henry, for example. Before he knew the mileage rules, he deducted 30 percent of his SUV’s cost. Once he learned the rules, he deducted...

IRS Audit Issue: SUV Built on Car Chassis

Here’s a vehicle story that you will find of interest. Taxpayer DJ is in an IRS audit of his 2018 tax return. It is now at the IRS appeals level.   Example The vehicle in question is an SUV with a curb weight of 5,700 pounds and a gross vehicle weight of 6,100...

Don’t Let Section 179 Recapture Hurt You

Okay, so you took the big Section 179 expensing deduction on your vehicle. How do you keep it? You might wonder: What do we mean by “keep it”? In tax law, there’s no free lunch. The Section 179 deduction comes with “recapture strings” attached. When you claim your...