Special offer

The silver lining to the high gas prices

Real Estate Agent with Maximum One Greater Atlanta Realtors

Until now, I had been tracking my mileage and taking a per mile deduction on my taxes for the real estate business related miles that I drive.

I had a thought the other day and called my accountant to verify.  It looks like even though gas prices have escalated 400% in the past year, the IRS has only raised the per mile deduction by a couple of cents.  Therefore, it has become MUCH more advantageous to take a deduction for actual auto expenses instead of the per mile deduction.

Talk with your accountant or check it out on your own; but it seems like this change could have a significant impact on my bottom line for the year and is a welcome bit of good news in these otherwise tough times.  Now I don't feel as bad about paying $5 / gallon since at least it's $5 / gallon tax deductible.

June Piper-Brandon
Coldwell Banker Realty - Columbia, MD
Creating Generational Wealth Through Homeownership

I have claimed actual auto expenses for a long time on my taxes.  It really works out well for me.  I have a home office and drive to my office 27 miles away and most of my driving is business related, I stop for things on my way to or from business. 

Jun 17, 2008 10:19 AM
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

Thanks for the tip.

Jun 17, 2008 10:20 AM