IMPORTANT FYI INFORMATION

Fkatz

Veteran Expediter
Charter Member
IRS SETS OPTIONAL MILEAGE RATES FOR 2005

IR-2004-139, Nov. 17, 2004

WASHINGTON — The Internal Revenue Service today released the optional standard mileage rates to use for 2005 in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.

Beginning Jan. 1, 2005, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

· 40.5 cents a mile for all business miles driven, up from 37.5 cents a mile in 2004;

· 15 cents a mile when computing deductible medical or moving expenses, up from 14 cents a mile in 2004; and

· 14 cents a mile when giving services to a charitable organization.

The three-cent increase in the business mileage rate was the largest one-year rise ever. The primary reasons were higher prices for vehicles and fuel during the year ending in September. The charitable standard mileage rate is set by law.

The standard mileage rates for business, medical and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile. An independent contractor, Runzheimer International, conducted the study for the IRS.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire, or for more than four vehicles used simultaneously.



Revenue Procedure 2004-64 contains additional information on these standard mileage rates. It will appear in Internal Revenue Bulletin 2004-49, dated December 6, 2004. It is also linked from the text of this release on the IRS Web site at www.irs.gov/newsroom.
 

Fkatz

Veteran Expediter
Charter Member
Thanks Glen,

HERE'S SOME MORE.

THE PER DIEM RATE FOR 2005 AT THE PRESENT TIME WILL STAY AT THE RATE OF $41.00 IN THE us AND $46.00 IN CANADA.
FRANK
 

Broompilot

Veteran Expediter
Mr. Fatz,

Is there any $ amount deducted from the $41.00 like 10 or 20% or can we claim the entire $41.00 for every 24 hours we are out?
 

Fkatz

Veteran Expediter
Charter Member
HI BROOMPILOT,

THERE IS A PERCENTAGE THAT YOU USE FOR THIS. ITS 70% FOR 2004 AND 2005
IF YOU ARE GOING TO DO YOU OWN RETURN WITH OVER THE COUNTER SOFTWARE,
MAKE SURE YOU ENTER THE SAME FIGURES UNDER MEALS & ENTERTAINMENT IN BOTH LINES, AND IT MUST SAY SUBJECT TO DOT REG'S

IT IS BASED ON THE ACTUALLY TIME YOU LEFT YOUR HOME AND RETURNED, YOU CANNOT TAKE A FULL 24 HOURS AND COUNT IT AS 1 DAY, IT IS BASED ON THE ACTUAL TIME YOU LEFT AND RETURNED.


THIS IS FIGURED BY QUARTERS, MIDNIGHT TO 6AM,(1/4DAY) 6AM TO NOON, (1/2) NOON TO 6PM (3/4) AND 6PM TO MIDNIGHT. 1DAY , SO IF YOU LEFT OUT ON MONDAY AT 3PM YOU WOULD ONLY GET 1/2 A DAY, AND YOU RETURNED HOME THAT FRIDAY AT 5PM YOU WOULD GET 3/4 OF A DAY
YOU WOULD GET A TOTAL OF 4.25 DAYS OUT FOR THAT WEEK.

IF YOU HAVE ANYOTHER QUESTION PLEASE DO NOT HESITATE TO ASK, REMEMBER ALL EXPENSES THAT YOU SPEND ON AND FOR THAT VEHICLE IS DEDUCTIABLE, IF YOU WOULD LIKE, I CAN SEND YOU A DEDUCTIABLE LISTING FOR YOU TO REFERENCE TO. VIA REGULAR E-MAIL, MY E-MAIL ADDRESS IS [[email protected]]AND REQUEST ONE.

FRANKLIN KATZ, ATP
FRANK'S TAX & BUSINESS
226 S. CHEROKEE ST.
KINGS MOUNTAIN, NC 28086
704-739-4039
FAX: 704-739-3934
 
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