If my business adopt charging on milage for auto used in business. What is the general practice?
2007-03-06 16:05:51 · 4 answers · asked by Danemma C 1 in Business & Finance ➔ Taxes ➔ United States
For 2007, the federal standard mileage rate is .485 cents per business mile. If your employees are required to use their own auto for business purposes, you could reimburse them for actual expenses, i.e. gas, etc. Or you could pay a fixed rate per mile. The federal rate covers gas, insurance, depreciation, etc.
The federal rate is used by employees on their tax return if they are not reimbursed by their employer for their out-of-pocket expenses.
2007-03-06 16:23:47 · answer #1 · answered by tma 6 · 0⤊ 0⤋
I'm not sure if I understand the question, but if this helps, I get reimbursed 41 cents/mile if I use my vehicle for business travel. It varies quite a bit by company. My friend's company pays 38 cents/ mile.
Edit - sorry. I see this is a tax question. Don't think I answered what you were asking.
2007-03-06 16:10:26 · answer #2 · answered by java girl 3 · 0⤊ 0⤋
IRS allows 44.5 cents per mile for 2006. That is the most usual method.
2007-03-06 16:16:37 · answer #3 · answered by taxman 2 · 0⤊ 0⤋
44.5 cents-per-mile for 2006; 48.5 cents-per-mile for 2007. These are the federal rates for income tax purposes.
2007-03-07 04:19:35 · answer #4 · answered by anr 3 · 0⤊ 0⤋