Tax Question - Mileage Deduction

[Mike Ellis]

For 2004 taxes, the medical mileage deduction was 14 cents/mile whereas the business mileage deduction was 37. 5 cents/mile.



Do any of you guys know the rationale behind the difference? If use of a vehicle to go to the doctor is judged to impact the owner at 14 cents per mile, why is business use deductable at more than TWICE that amount?



Just wondering why the rates are different... . miles is miles as far as I can tell

 

[klenger]

It's a way for the IRS to beat up on the taxpayers who can afford it the least.



I have group insurance and a medical flex account from work, all of which is tax deductable. A person with no insurance can only deduct medical expenses over a certain percentage (3% I think) of their taxable income. Explain that.

 

[Rman]

My wife is a real estate agent so we fall into using this write off. I can tell you it sure sucks that she gets an additional 15% tax just because she runs her own business. Perhaps that's figured in there with the fuel consumption write off.

 

[Cummnzpowr]

Mileage

Not sure why Mike, but seeing as i just spent over a week total trying to figure my mileage figures and such; i might say that is because usually Hospitals or doctors offices are usually relatively in close proximity to your home or office and thus, IRS figures they only let you slide so much? As for business being 37. 5 cents, maybe because you will be traveling farther or out of town for it. By the way, it is 40 cents for 2005