Posted by Michael Ede on 3/1/11 12:50am
Msg #374576

Can someone explain the mileage charges to me?

I cut and pasted this from the message that pops up when you update your fees:

Suppose a title company would like you to close a loan 67 miles from your primary address. (my standard mileage is 15.)
Mileage Charge: $52 (104 total extra miles @ $0.50 ea.)

I was thinking the "extra miles" would be 67-15=52 x0.50= $26. It kind of looks to me like they got to 52 but then just put that in the dollar amount and then put it in the equation backwards to get the total miles. But I failed math so part of me thinks I just don't get it.

Could someone explain this?

Reply by Marian_in_CA on 3/1/11 1:27am
Msg #374579

Think "round trip" -- after all, your transportation costs don't end after a one-way drive.

$26 x 2 = $52

Reply by Susan Fischer on 3/1/11 1:45am
Msg #374581

Using the KISS approach, here's a couple of ways to

consider:

1. What is it costing you to drive? There's MPG (Miles Per Gallon cost of fuel; and another calculation: the Dollars Per Mile (DPM); check it out if you know your MPG:

http://www.unfocusedbrain.com/projects/miles_per_dollar/

2. What is the mileage deduction for 2010? $.50 per business mile:

http://www.irs.gov/newsroom/article/0,,id=216048,00.html

3. What are the actual costs per mile to drive? Here's just a simple one:

http://www.piercetransit.org/rideshare/costs.htm


We all live in different areas with different circumstances. Defining your operating costs, and tax deduction options, may help you focus on a broader pricing structure.

I know my area well, and have refined the circles on my map to determine my fees. It's about developing a profit margin you can live with.

In other words, effective Budgeting.

Best of luck.

Reply by MW/VA on 3/1/11 8:50am
Msg #374597

I don't use a formula for calculating mileage. I quote a fee that includes travel, printing, etc. The only time I add extra charges is for an unusual distance, and then I charge an extra $25. I do keep a mileage log in the car to keep track of my business miles for tax purposes. It's a simple system that works, but I'm not in a rural area. IMO it all balances out. Of course, mileage is going to be a bigger issue as gas prices rise. Good luck.