What is a fair reimbursement rate per mile for using my vehicle for company travel?

Question

my company pays .39/mile as reimbursment for using my car for company travel. I pay all gas myself. I'm just wondering if there is an industry standard for arrangements like this. I pay gas/insurance/maintenence on my car which I also use for personal. mileage reimbursement is of course only for business travel. Whats fair? any feedback helps.

Answer 1

There is no industrywide standard, but many companies follow the IRS business deduction rate, which is currently I believe 49 cents a mile.

Answer 2

yes thats correct , milage is determined by the irs

Answer 3

There is actually already a predetermined rate from the IRS. The current rate is:

48.5 cents per mile for business miles driven;

Your company should provide you with a form you can fill out to track your mileage. I've done it before and it really adds up! With today's gas prices, you definitely want to get that reimbursement!

Answer 4

If you don't get the IRS rate of 48.5 cents from your company you can deduct the difference on your taxes. Nat as good as geeting the full rate but it helps.

The company can pay you anything they desire.

Answer 5

Rosie25 is correct for the current mileage rate allowed by the IRS($0.485/mi.). If your company only pays $0.39 you can claim the additional $0.085/mile as a business expense on a form 2106 when you fill out your income tax. However, you must be itemizing deduction to do this since the total on        F-2106 transfers to Sched A(itemized deductions). Also the amount of miles driven would have to be large to be of any consequence at all.