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Did you know? Standard Mileage Rates

Did you know? Standard Mileage Rates

Did you know the standard mileage rate allowed for business use of an auto does not include interest incurred to purchase the vehicle?

Therefore, a self-employed individual may deduct on Schedule C interest paid on a loan to acquire a business vehicle even if the loan is an otherwise non-deductible consumer debt. Where the vehicle is only used partially for business, the interest must be prorated. In that case the personal portion of the interest is not deductible.

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Lee Reams, BSME, EA

Lee Reams, BSME, EA

Editor-in-Chief

Besides his role at CountingWorks as an educator and speaker to thousands of accountants nationwide, Lee manages a technical research service for a large group of tax accountants which sharpens his technical skills. Lee served on the Board of Blackline Systems, is a former Board of Director for the California Tax Education Council, is a Past President of the San Fernando Valley Chapter of Enrolled Agents, Member and Past Director for the California Society of Enrolled Agents.

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