Weekly TIP:
ABWA Member
Debbie Holliday B-CS Tax Group
The Standard Miliage Rate is where you track the BUSINESS miliage you accrue and use a standard rate. For January 1, 2011 through June 30, 2011, the standard rate is 52 cents per mile: for July 1 through December 31, 2011, the rate is 55.5 cents per mile.
You need to keep accurate records of the miles incurred for business purposes, dates of business use, destinations and the business purpose (deliver order, banking, deliver catalogs, home spa show, party, one on one etc). Also you'll need to note the odometer readings at the beginning and end of the year to determine the total nimes for the year for all uses. The important aspect is to make sure you maintain accurate records. The IRS may disallow a deductioni for mileage if you are unable to substantiate your deduction.
