What is gas, insurance, depreciation, etc that reaches $.445? I want to see how much is charged to what category.
2006-07-13 03:03:31 · 4 answers · asked by sbrman_2004 2 in Business & Finance ➔ Taxes ➔ United States
The breakout of expenses is based on the fixed and variable costs of operating an auto and are provided to IRS by an independent contractor (according to the link below).
The independent contractor is Runzheimer International.
Unfortunately, Runzheimer doesn't disclose the information you've sought.
2006-07-13 03:43:11 · answer #1 · answered by gary b 1 · 0⤊ 0⤋
The IRS does actually break out the component of the mileage allowance that is related to depreciation. For purposes of determining one's basis in a business automobile, they must assume that they claimed depreciation expense equal to 17 cents per mile (for 2005 and 2006). For example, if a $445 deduction is claimed for 1,000 miles, the person is assumed to have claimed a depreciation deduction of $170.
Other than that, I am not aware of any further detail that the IRS provides in determining the rate.
2006-07-15 19:44:29 · answer #2 · answered by taxmannyc 3 · 0⤊ 0⤋
You can either use the actual cost method (gas, oil, repairs, insurance, depreciation, etc.) or you can use the standard mileage deduction. There is no direct correlation between the two. Figure it both ways and take go with the one that's best for you.
2006-07-13 11:18:26 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
There isn't any specific amount that is allocated to each category. Each year, the rate is adjusted for inflation on a national average.
2006-07-13 10:43:02 · answer #4 · answered by extra_37 4 · 0⤊ 0⤋