If you drive a car or truck, you've probably noticed that gas is rather pricey! With gas prices so high, it's important to choose the right way to deduct car and truck expenses. So we're writing to make sure you understand the issue.

You have two ways to calculate deductible car and truck expenses:

1). The "actual expense" method lets you deduct the "business use percentage" of all your actual expenses. These include depreciation and interest (if you buy) or lease payments (if you lease), insurance, gas, maintenance and repairs, parking, and tolls.

2). The "mileage allowance" method lets you deduct a set amount per mile. The IRS has just raised this from 50.5 cents/mile to 58.5, effective for July-December, 2008. But that allowance is the same for every car on the road, whether you drive a hybrid or a Hummer. And it may be far less than your actual costs! The American Automobile Association's recent survey, "Your Driving Costs (2008)," reports actual costs ranging as high as 91 cents/mile for an SUV driven 10,000 miles/year. And those figures are based on gas at $2.941/gallon!

You may even be able to squeeze extra savings out of mileage your employer reimburses. That's because you can deduct the difference between your actual costs and your employer reimbursements.

If you'd like us to show you how to make the most out of your car and truck expenses, please call us at 760-747-4605.