Thread: 5 Mile commute.
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Old 02-11-24, 09:44 AM
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I-Like-To-Bike
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Originally Posted by noglider
The government lets you deduct 67 cents per mile. (This is 2024.) This is based on much more than fuel costs. It's more expensive to drive than we usually realize. I read an analysis this, and it turns out to be pretty accurate. Some people think that fuel is the only cost that is linearly proportional to distance traveled, but they're wrong. Repairs, tires, and car replacement are pretty much linear also. So every mile you don't drive is another 67 cents saved.
Don't fool yourself, most of these fixed cost expenses are "saved" only if a bicycle replaces the ownership, use and frequent replacement of a new car used only for commuting purposes.

The IRS government "deduction" for reimbursement car expenses (67 cents per mile for business-related driving, 21 cents per mile for moving and medical purposes, 14 cents per mile for miles in the service of charitable organizations) is not applicable for commuting to and from home to work location, whether by bicycle, bus or car.

Also, assuming the government mileage rate (GSA or IRS) is calculated on a model similar to the AAA "driving cost" per mile figure, AAA Driving Costs it is based on variable costs related to actual miles driven such as fuel and maintenance for driving a new vehicle about 14 or15 thousand miles a year, and more importantly the fixed costs of replacing the vehicle every five years with a new vehicle with the associated depreciation loss and loan interest, as well as other fixed costs like insurance, taxes, and registration costs which accumulate whether the vehicle is driven "x" miles or is kept parked at home for all 5 years. The bulk of these expenses are the fixed costs of ownership, and mileage is of little relevance.

Very little of the automotive "deductible expenses" are applicable to the expenses of riding or owning a bicycle, especially one that will be only used for 10 miles a day of riding to/from home to work.

Last edited by I-Like-To-Bike; 02-11-24 at 09:48 AM.
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