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Mileage Rates for Tax Year 2006
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Beginning January 1, 2006, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
NOTE: Taxpayers who use FOUR vehicles or less at the same time for "business" purposes may use the standard mileage rate. If you use the mileage rate, you may also be able to deduct parking fees, tolls, interest, and state and local taxes (other than gasoline taxes). The standard mileage rate CANNOT be used to determine the expenses for automobiles used for hire, such as taxicabs and limousines. Also, taxpayers CANNOT use the standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after taking any Section 179 deduction for that vehicle. *Hurricane Katrina Charitable Mileage Rate Deduction The mileage rate individuals may use to compute a tax deduction for personal vehicle expenses associated with charitable work is statutory and has not been increased since 1997. For a taxpayer providing relief related to Hurricane Katrina, the "Katrina Emergency Tax Relief Act of 2005" sets the charitable mileage rate at 70% of the standard business mileage rounded up to the next highest cent. Calculation: $0.445 X 70% = $0.32 |
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Click here to return to "What's NEW for Tax Year 2006?" |
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