The standard mileage rate for 2017 took a dip this year, but don’t let that stop you from using this method to your benefit. Unless of course you have already chosen to use the method of using actual receipts. Many people that drive larger vehicles, the actual receipts method has probably served you well, but if you are driving a car or a motorcycle then the standard mileage rate might be the best method of choice. If you have a motorcycle, then you might want to consider using your motorcycle as your business vehicle. Think about it! When the weather warms up, you use a motorcycle for 100% business use and reap the benefits. Sales people who are on the road and rack up the mileage. Realtors… maybe you want to rebrand your image using your motorcycle. Now depending on what kind of motorcycle you have, you might get about 50 -75 miles per gallon. We’ll use 65 miles per gallon for this example.
If a gallon of gas cost $2.39 and your motorcycle gets 65 miles per gallon, and with the IRS business mileage rate of 53.5 cents per mile, you would have spent $2.39 for that gallon of gas but you would have received back on your tax return $34.78 for every 65 miles you had driven your motorcycle. This is just one of the ways to have your taxes working for you. If you want to learn how the new tax laws can benefit you and your specific situation, call Jeff and make an appointment. (859) 816-1288