Posted on 06/29/2021 7:37:16 PM PDT by hapnHal
IRS Announces 2021 Mileage Rates for Business, Medical and Moving
The IRS issued Notice 2021-02, announcing the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Beginning on January 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
56 cents per mile for business miles driven, "DOWN" 1.5 cents from the 2020 rate (YES DOWN)???
16 cents per mile driven for medical* or moving purposes, down 1 cent from the 2020 rate
14 cents per mile driven in service of charitable organizations (set by statute and remains unchanged)
(Excerpt) Read more at ebcflex.com ...
Our ruling communist masters will leave no stone unturned when stealing money...
Gas prices up, deductions down. Buy electric./sarc
Why should I have to subsidize certain travel?
How are you subsidizing other peoples’ mileage deductions?
Its a business writeoff or doing volunteer work mileage.
They reduce their tax bill, it doesn’t somehow therefore increase your tax bill.
I can’t wait to see what they do with the short and long term capital gains.
The standard deduction went up lest tax year. If personal/business deductions are not going over the standard deduction amount, no worries.
No stone unturned. Even the gravestone.
This sounds hugh and series! Needs most cowbell.
Fuel prices were down, way down, from the previous year when they changed the deduction.
A tax deduction is a subsidy. No one subsidizes me when I drive.
I don’t agree with you that these tax deductions are subsidies.
You and I don’t pay more because someone can lower their tax bill because they did this or that. Its not a zero sum type of thing.
Here’s a good explanation why tax deductions are not a subsidy.
https://www.lewrockwell.com/2016/04/laurence-m-vance/tax-deductions-subsidies/
“Why should I have to subsidize certain travel?”
Well, there’s the public reason, and the real reason.
The public reason is because, as its name suggests, the “income” tax is supposed to be a tax on income, and not on revenue. And conceptually, “income” means “revenue less expenses of earning the income.” And if taxed income is earned due to having used a vehicle to travel, then those travel expenses are properly deducted from the revenue generated by the use of one or more vehicles to perform travel. Or it is, if one is actually trying to be seen taxing “income” and not “revenue.”
Of course, the “income” tax, as actually implemented, only approximates taxing “income” instead of revenue—and how well it does that depends on who is being taxed, and how they generate taxable “income” (revenue.)
Which brings us to the real reason: “We the people” don’t actually control our government, nor what policies it pursues. It’s the rich and powerful who do that. And those people, unlike most of us, are not “wage slaves.” As a result, the tax laws are structured to let the rich and powerful reduce the amount of tax they must pay relative to the magnitude of their revenue by as much as possible, which means that the tax rate as a ratio to revenue of the wage slaves has to be maximized in order to collect the amount of tax that the rich and powerful need in order to get from government what they want from it, and also to enable the government to buy enough votes to keep the rich and powerful rich and powerful.
And that’s why “they” can generally deduct transportation costs—and all other expenses—from their revenue, but we “wage slaves” generally cannot.
So, I assume you were ok with the salt tax deduction?
You’re right. Companies shouldn’t be able to deduct the cost of goods. Or utilities. Or payroll. They’re all subsidies!
You don’t know what you are talking about.
Thanks, that cleared it up.
Wow. It seems that you have been indoctrinated by socialism with that comment.
It is the socialists who say oil company tax deductions for expenses amount to a "subsidy" on big oil. You are in good company with the anti-capitalists who see all revenue as property of the gov't and that we should be grateful for whatever they allow us to retain.
If I have to drive my personal car for legitimate and substantiated business purposes, I should be reimbursed for mileage paid to me by my employer tax free. My employer takes a business tax deduction for it.
The IRS however sets an annual limit on mileage reimbursement for it to be non-taxable. The employer can reimburse less than the IRS limit or more, but if they reimburse more, the amount over the IRS limit is taxable income to the employee and not deductible to the employer.
FWIW the IRS mileage is not solely determined by gas prices. Other factors that go into the rate are insurance premiums, maintenance costs, licensing and other fees and vehicle depreciation costs. This is based on a national average year by year.
One thing I found out two years ago when I was working as a delivery driver for a national food chain that paid mileage at less than the IRS rate was that prior to the Tax Cuts and Jobs Act (TCJA) of 2017, an employee could take a deduction for unreimbursed milage or milage reimbursed under the IRS limit. But those deductions were eliminated under TCJA.
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