Elaine

If you are self employed, and own a business, whether you have an office or it is a home based business, you should be sure to make use of the mileage tax deduction. It is basically a way the IRS allows you to be reimbursed, through a tax deduction, for the business use of you vehicle. You can deduct the expenses either by totaling up all of your receipts, or by using a miles. I would personally recommend using the mileage tax

All you need for this is a mileage book. Then, just keep track of the miles you drive to and from places for business purposes. There are also deductions allowed for charitable contributions and for medical expenses. Below is a list of the mileage rates, as published by the IRS, for 2006 and 2007.

2006 Mileage Tax Deduction Rates

• For business, you can deduct 44.5 cents per mile
• For charity, you can deduct 14 cents per mile. If it was for Katrina reasons, the deduction amount then increases to 32 cents per mile
• For medical and moving, you can deduct 18 cents per mile. This means the mileage you drove to and from the doctors or dentist is deductible, as well as any mileage to needed to move your business

2007 Mileage Tax Deduction Rates

• For business, you can deduct 48.5 cents per mile
• For charity, you can deduct 14 cents per mile
• For medical and moving, you can deduct 20 cents per mile

Being self employed, and running your own business has huge benefits. And better yet, the IRS tax laws are really established and favor the business owner. So, if you own, or are thinking about starting a business, then make sure to make use of the mileage tax deduction.

For more resources about starting a business for tax deductions, visit Business Information and Strategies