Mileage Allowance

Categories: Tax, Accounting

You use your car for business. So why shouldn't you be allowed to deduct some of its costs against your earnings?

You should. The question runs, "How do you calculate how much you can deduct?" Well, everyone has a different car, different driving skills, and different standards of maintenance, and no two cars' expenses are the same. The industry decided it was too hard to try and calculate a la carte a cost per mile for every car driven for business purposes, so they gave up...and instead just adopted a blanket figure. Like, "You get 32 cents of deduction for every mile you drive for business purposes." Or something like that. Hence, tracking miles is a biggie if you drive a lot. Those miles add up.

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