Mileage is a popular business deduction, but taking advantage of it has gotten more complicated as the IRS cracks down on mileage deductions by not allowing estimates to be used in an audit. In fact, unless you provide complete and accurate records, your entire mileage deduction can be rejected, even if you can prove that you drove for business during the year.
Costco is changing its credit card partner from American Express to VISA effective June 20 and cardholders will benefit from the new card’s reward program.
The Citigroup Visa increases most of the reward tiers from the American Express program by one percentage point each. VISA cardholders will earn four percent cash back on fuel purchases instead of three percent up to $7,000 in eligible gasoline purchases per year and one percent on eligible gasoline purchases thereafter.
New mileage rates went into effect Jan. 1 and they are lower than the 2015 rates. The Internal Revenue Service's "optional standard mileage rates"are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The 2016 standard mileage rates for the use of a car, van, pickup or panel trucks are:
Business One: “Fred” is a skilled electrician. He worked 20 years for the same company, and one day realized that he was getting paid $20 per hour but was billing $80 an hour for his time. “This is unfair!” he thought, so he decided to sit for the contractor’s license exam and open his own business. He had $10,000 saved up, and he knew that he would be able to get clients the same way his boss did very easily.