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Title: Please check my math here... Post by Redd on May 24th, 2007, 7:19pm We've been talking about gas prices and there was some information offered as to mileage reimbersment by my company. So if my logic is correct it should follow as such. FACTS: 1) company pays $0.30 per mile when using our cars for business. 2) some driving is city driving some is highway, so ering on the side of 90% city miles, I average 20 miles per gallon. MATH: .03/mile x 20 miles average = Pay rate of $6.00 per gallon of gas used. Am I correct? or have I calculated backward? (I'm not figuring in insurance, wear and tear and maintanance of the vehicle.) |
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Title: Re: Please check my math here... Post by Jonny on May 24th, 2007, 7:36pm .03/mileX20 or .30/mileX20? |
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Title: Re: Please check my math here... Post by Linda_Howell on May 24th, 2007, 7:36pm Pegg, Your intent and concept is correct.....but - 1 typo: it should be .30 x 20 = $6.00 The other item is: that it is $6.00 for the 20 miles, not for the gal of gas. If you are on the hwy and got 25 mpg then it would be $7.50 reimbursement and for a gal of gas. In other words don't apply it to the Gal of Gas. |
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Title: Re: Please check my math here... Post by Redd on May 24th, 2007, 7:43pm That was my question really... if my truck gets on average, 20 miles a gallon, and I get paid back .30 per mile would that not equate to being paid $6.00 per gallon of gas that I use for business purposes? I have a bit of a mathmatics disability, so when I may think I'm doing my figures right, I may totally off base. If there is another formula to figure out the equivalent I'm trying to find please do let me know. I admit that this is NOT my strong suit. |
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Title: Re: Please check my math here... Post by BlueMeanie on May 24th, 2007, 7:46pm Thanks for the thread. I love math ;;D I'm not sure how you came up with those numbers. Here's what I'm figuring with what you described. 20 MPG @ $3.65 gal of gas It would cost you 18.4 cents a mile for gas Company pays 30.0 cents a mile Difference = 11.6 cents a mile (wear & tear reimbursement) + 20.0 cents a mile difference that can be deducted from taxes at the end of the year. Assuming you drive 10,000 miles a year. You would receive FREE gas + $116.00 company paid (wear & tear) + $200.00 IRS deduction Total = $316.00 (wear & tear) plus all gas paid annually Make sure you keep records of all miles driven for tax purpose at the end of the year. |
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Title: Re: Please check my math here... Post by Redd on May 24th, 2007, 7:51pm Well some periods they pay even less... This is the most they have paid since I started there almost a year ago. It fluctuates. I probably better meet with a tax professional to get the full skinny on this and then also keep the emails from corporate that state what the rate of reimbersment will be for the periods. They do not give us reports on that at the end of the year. |
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Title: Re: Please check my math here... Post by Grandma_Sweet_Boy on May 24th, 2007, 8:39pm Crap - I'm way too tired to do the math, pegg, but our company pays those who use their own vehicles a rate of $0.34 per km. C'mon you gurus of math - how does this compare with pegg's $0.30 per mile. ;) I don't think you're being paid enough Pegg, but that's just me. I've driven a company vehicle since 1990 - no idea whatever I'll do about that when I retire and have to pay for all that stuff. A scooter is sounding good! Carol. |
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Title: Re: Please check my math here... Post by Linda_Howell on May 24th, 2007, 9:07pm One who is getting paid in Kilometers is getting more since Kilometers is less than a mile. Canadians!!!!!!! but I love your beer. And you Carol. :-* |
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Title: Re: Please check my math here... Post by Grandma_Sweet_Boy on May 24th, 2007, 9:10pm on 05/24/07 at 21:07:08, Linda_Howell wrote:
Aw thanks Linda. I knew someone would come along and figure it out for me. I'm on vacation this week - thus - brain no longer working! Golf, golf, and more golf! |
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Title: Re: Please check my math here... Post by jimmers on May 24th, 2007, 9:23pm Pegg, Like I said in a previous statement to one of your posts regarding this issue. The mileage reimbursement rate should be .485 per mile or 48 1/2 cents. Drive 10 miles on company business, get back $4.85 I believe its the law. You may have a bunch of money coming to you. Jimmers |
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Title: Re: Please check my math here... Post by UN solved on May 24th, 2007, 10:15pm on 05/24/07 at 21:23:13, jimmers wrote:
The Law ? Never heard of that law. Wouldn't that law almost have to change daily to keep up with gas rates ? BTW, my Ford V8 doesn't get good gas mileage. That .30 a mile might not be very good for me since I probably only get about 10 miles to a gallon of gas (especially with the AC on ! ) UNsolved |
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Title: Re: Please check my math here... Post by E-Double on May 24th, 2007, 10:28pm on 05/24/07 at 21:23:13, jimmers wrote:
I don't know if that rate is correct but it is certainly MUCH more than $.30 I get 46 If self employed you can write off......48.5 will get reimbursed. http://www.irs.gov/newsroom/article/0,,id=163828,00.html |
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Title: Re: Please check my math here... Post by nani on May 24th, 2007, 11:01pm 48.5 cents is the Federal amount. If the company pays you less than that, you can deduct the difference on your tax return. If they pay the full amount, you should not claim any mileage on your taxes. If they don't pay anything, you can deduct the full amount per mile. |
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Title: Re: Please check my math here... Post by Chillrmn1 on May 25th, 2007, 5:35am Nani hit the nail on the head. |
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Title: Re: Please check my math here... Post by Brewcrew on May 25th, 2007, 7:28am on 05/24/07 at 19:43:31, Redd wrote:
Me too, Pegg. I keep buying lottery tickets. ;;D |
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Title: Re: Please check my math here... Post by burnt-toast on May 25th, 2007, 7:52am You have to account for insurance, wear and tear, maintenance, and consumables. When you add increased costs/loss of value receiving $0.30 per mile is most likely not covering your total expenses. Insurance is worth looking into. Some policies have restrictions/exclusions on personal vehicles used for company business. Some policies require policy holders to notify the insurer that a car is driven ??% for business. Depending on how much driving is done on company business additional coveage may be necessary to be properly insured. Miles driven increases frequency of routine maintenance and mechanial repairs. It also decreases vehicle value due to cosmetic/physical wear & tear and excessive milage. If you lease excessive milage and wear & tear can result in significant financial penalties/repair costs at expiration of the lease. Being aware of these provisions in your lease is important. The Federal allowable deduction is established based calcualtions of costs/value loss for operating an average vehicle one mile. The difference between employer reimbursement and allowable $0.485 deduction is established to cover typically low employer compensation for personal vehicles use on company business. Tom |
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