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keepthetips t1_itdumo1 wrote

Hello and welcome to r/LifeProTips!

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Ok-disaster2022 t1_itdxyxs wrote

Nah, us IRS standard car reimbursement numbers, unless you have a super expensive car, you have maintenance as well as depreciation and taxes to pay on a car. The last I looked like a decade ago it was roughly 54 cents a mile. If whatever you're doing with your car isn't covering that cost, you're losing money.

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Pt5PastLight t1_itfc6l6 wrote

Well of course that’s still 54 cents times your tax rate percentage. For most of these people the actual money back is going to be about 10 cents per mile. If you’re being taxed 20 cents per dollar than a one dollar deduction can only save you the 20 cents back.

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Vipershark01 t1_ite1oib wrote

1099 workers get a lot of that depreciation back on taxes, probably not actually good for a 50k car, but for something under 20k it's pretty good.

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Pt5PastLight t1_itfcr63 wrote

Well for every dollar value you depreciate, you get back a fraction of a dollar equal to your tax bracket percentage. But yes if you lose 10k in depreciation you’ll get back say 20% or $2k and actually lose $8k in vehicle cost. You’re a real cup is 1/5 full kind of optimist huh?

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SecretCartographer28 t1_ite2rfb wrote

Don't buy an expensive car that makes you work a shit job. Don't let a shit car make you lose a good job. 🖖

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ChaoticAaronStout- t1_item62f wrote

Yeah...in most cases you really aren't making money. You're just cashing out the value of your car.

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ETAVEGAMING t1_itepvd4 wrote

The cost of driving a brand new Kia Rio or similar type vehicle to 200k miles is about 35 cents per mile.

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