IRS Mileage Rate 2011, 2012, Standard Business Tax Deduction

The new standard business IRS mileage rate will include cars, vans, pickups, and or panel trucks. The IRS allows you to deduct your auto expenses for visits to customers and clients as well as any business appointment that is away from your usual workplace. If you are a business owner, then you may also deduct expenses when traveling to pick up supplies.

Standard IRS Mileage Rate Vs. Actual Vehicle Expenses

You can decide to either take the standard IRS mileage deduction rate or you can deduct the actual vehicle expenses.

Actual Vehicle Expenses would include the following items:

• Gas

• Oil Changes

• Tires

• Repairs & Maintenance

• Insurance & Registration

If you decide to go with the actual expense deduction you may not change at any point in the year to the standard mileage rate but you may change from standard mileage rate to actual vehicle expenses. The most important thing to consider in making the decision to use either actual vehicle expenses or standard mileage would be to take a look at the number of miles you drive each year.

If you travel a large amount of miles, then the standard business mileage rate deduction is probably a better choice for you. The actual vehicle expenses deduction can yield a larger tax deduction, but is also more time consuming. Every business trip must be logged with mileage, date, and purpose for the standard mileage deduction.

To help you maximize your IRS mileage rate tax deduction, please visit TurboTax Online. TurboTax Online offers detailed instructions on claiming all of your income tax deductions.