Write down the mileage from your car today.

Andy Rogers, The Tax Buddha, just alerted us that the IRS has raised the standard mileage rate about 15% due to the huge increase in the cost of fuel.  

Since gas is approaching $5/gallon, the IRS has increased the standard mileage rate from $0.505/mile to $0.585/mile starting July 1, 2008. 

Find an easy way to keep track of business miles - the deduction will add up quickly at almost sixty cents each mile. If you don't already have a system, try writing each little trip on your calendar or something else that will help you reconstruct your business miles in case you get audited. In general, the IRS is only looking to see if you have a method accurate enough to justify your deduction.

As a small business owner, you need to take advantage of all the breaks you can get. You are keeping the economy moving by responding to changing conditions much faster than large companies. And you are adding three-fourths of all new jobs that become available in the U.S.

So do it now! Write down your mileage and have a fabulous weekend!

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