2007 IRS Auto Mileage Rate
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.
Auto expenses are a favorite target during IRS audits, so it’s worth noting that whether you use the mileage reimbursement method or the company-owned-actual-expenses method, a mileage log is your best defense. The burden of proof — that the car was used for business, not personal travel — is on you. In the absence of a mileage log you might be asked to reconstruct your travel through other means (go through your calendar of clients visited, etc.). If you have questions, we’d be happy to discuss with you when we’re preparing your tax returns.
