Escrow Trust Advisors | New IRS Change Aims to Save Americans Money on Mileage Deductions
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New IRS Change Aims to Save Americans Money on Mileage Deductions

New IRS Change Aims to Save Americans Money on Mileage Deductions

mileageblogIt’s pretty rare that we receive good news from the Internal Revenue Service, but this is one instance of savings they are sending your way. If you use your personal vehicle for business purposes, you will be able to deduct an additional $0.04 a mile from your taxable income as of July 1.

Typically the IRS updates its mileage rates at the end of the year for the next calendar year, but they decided to push the savings ahead earlier this year. It is no surprise given that the average gas price is now $3.61 per gallon – an increase of over one dollar a gallon from last year. According to the IRS commissioner, the increase in gas prices have had an immense effect on Americans. The bureau hopes that this change will in some way assist those Americans who use their vehicles for business purposes.

One common challenge still remains…keeping track of miles used for business reasons. To help, we wanted to provide you with several very useful applications that might assist you in getting the highest deduction possible when it comes to mileage.

Mileage Pad: This application is for iPhone and Android users and allows you to track your miles via a simple interface. One of this app’s best features is that is automatically pulls in IRS data so you never need to worry about configuring the mileage deduction.

Gas Log: This application is only available for iPhones. Use two personal vehicles for business purposes? This app allows you to track mileage incurred on multiple cars.

Mile Bug: This application is only available for Android users. It possesses some additional functionality, as it also allows you to track general expenses such as food, travel, and general office expenses.