Q: My company pays a flat 30 cents a mile rate for car expenses. Can I deduct the difference between my costs and 30 cents per mile? A.Z., Atlanta, Ga.
A: Theoretically yes, but it's unlikely you'll be able to. Here's why: You can deduct your excess cost as a miscellaneous expense on your tax return as long as you provide proper substantiation of your actual costs. But you can only deduct the miscellaneous expenses that exceed 2 percent of your adjusted gross income. Not many people can clear this hurdle. In any case, you don't have to substantiate (or track) your actual expenses if you claim a deduction using the "standard mileage rate" method. For 2004, the standard rate is 37.5 cents for every business mile traveled. So you can deduct 7.5 cents for every business mile. Note: You must complete Form 2106, Employee Business Expenses, to deduct the excess costs.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/5692/deduct-unreimbursed-business-mileage "