Replies to post #40886 on Mexus Gold US (MXSG)

[T-Hawk]

In the formula the IRS uses, there is some kind of estimate to determine the average number of miles vehicles can be used in its life time. (Or in Mexus case, how many ounces of gold that can be expected to be prodcued from a particular reserve)

Also the biggest factor in the IRS determining a mileage reimbursement number is not fuel costs but depreciation. In order to calculate depreciation a starting and ending asset value is needed.

My guess is The IRS uses some kind of average cost of a new vehicle and an average trade-in value after "X" number of years when determining depreciation average values.

There's no way around it, a begining asset value (i.e. amount of gold reserves) is needed to be able to put forward a credible cost per ounce number.