Many people use their personal automobile to conduct business activities. Such use can be deducted on a "per mile" basis.
Due to the run-up in gasoline prices in recent months, the per mile deduction was increased from 40.5 cents to 48.5 cents. With gas prices backing down, the IRS has set the rate at 44.5 cents for 2006.
Note that if you are taking a mileage deduction, one of the first things the IRS may look at on audit is whether you are counting miles when you are commuting between home and work. Generally, these are not deductible except at times in regard to a temporary work location.
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