Quote:
Originally Posted by mbyron
You should understand that mileage reimbursement is not fuel reimbursement. The difference is that mileage covers depreciation and maintenance in addition to fuel. In most cases, the depreciation and maintenance amount to rather more than the cost of fuel.
For instance, average depreciation is $162 per 1000 miles. For your 240 miles, that would come to about $39, which would leave just $57 from your mileage fees. Depending on your vehicle, that's getting close to the cost of a tank of gas, and that doesn't factor in maintenance.
The other thing you might bear in mind is that the IRS mileage rate is 50¢/mile, and it seems you're getting 40¢/mile. The difference should be tax deductible ($24 for your current trip).
Sorry to be "Debbie Downer," but you're not likely making money off a mileage check.  |
You're right about the first part. I'm more worried about the wear and tear/depreciation on my car from miles driven than about paying for gas.
I deduct for mileage on taxes.