Lately people have been asking me questions about the current IRS mileage rate and how to use it – so I wanted to give a quick reminder to everybody: this year’s (2007) rate is 48.5 cents per mile.

For a more in-depth discussion about the IRS mileage rate, how to use it, and some limitations, please click here.

It’s worth noting, too, that you’re supposed to keep a mileage log. I know, it’s a pain, so ask your CPA what her/his opinion on the matter is.

Some CPAs we work with are adamant about strictly accounting for business miles, while others are more forgiving of what could generously be called, “annual estimates.” All the tax people we work with, however, tell us that auto expenses (and meals and entertainment) are a favorite target during IRS audits.

For the record, all of this year’s numbers can be found here, and you have one-click access to them under the “Quick Links” section at our home page: www.FinancialThink.com.