Re: The bottom line for '05
Posted: March 2nd, 2006, 8:08 pm
You don't really get 44.5 cents. At tax time you get to reduce your taxable income by 44.5 cents times your business miles. If you're like most of us and pay roughly 25% in taxes, you end up with about 25% of 44.5 cents = 11 cents per mile.
If your car gets 25 mpg and gas is $2.50 a gallon, gas costs you 10 cents a mile and Uncle is paying your gas plus a penny a mile.
This is why when I'm not busy I don't hesitate to take the jobs that are out too far for the other guys.
If your car gets 25 mpg and gas is $2.50 a gallon, gas costs you 10 cents a mile and Uncle is paying your gas plus a penny a mile.
This is why when I'm not busy I don't hesitate to take the jobs that are out too far for the other guys.