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T Edwards
08-10-2005, 05:30 PM
At the beginning of the '05 tax year the allowance was $.405 per mile. Does anyone know if this has increased with the steady rise in fuel costs?

Woody82986
08-10-2005, 05:58 PM
I am pretty sure that once they set an allowance it is locked for that year... I think all they can do now is raise it for next year. I am not 100% sure but I think thats how they do it.

Woody82986
08-10-2005, 06:04 PM
I just checked the site because I got curious about my post. They set the mileage rate based on what the conditions are for that year ending in September. That means that 2006 allowances will be set based on what the situation is with vehicle prices and fuel as of September 2005. Thats what I get out of it anyway. So I think we are stuck with 40.5 cents for the year.

ProLawns
08-10-2005, 07:23 PM
T Edwards, if your truck is used solely for business you can write off all expenses related to the vehicle. It's usually a bigger deduction than the mileage allowance.