IRS Business Mileage Allowance

Discussion in 'Lawn Mowing' started by T Edwards, Aug 10, 2005.

  1. T Edwards

    T Edwards LawnSite Member
    Posts: 230

    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?
     
  2. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    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.
     
  3. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    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.
     
  4. ProLawns

    ProLawns LawnSite Senior Member
    Posts: 476

    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.
     

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