Wednesday, January 17, 2007

Additonal Mileage Deductions For Use of Your Car

When preparing your 2006 federal tax return you can deduct the following car mileage:

  • Travel for medical purposes at 18 cents per mile
  • Moving expenses at 18 cents per mile
  • Travel for charitable services at 14 cents per mile
  • Travel for Hurricane Katrina volunteer services at 32 cents per mile

The extraordinary outpouring of relief efforts for Hurricane Katrina prompted Congress to continue through 2006 a special mileage exception for miles driven in support of charities providing Katrina-related services. If you used your vehicle for such purposes last year, you can deduct the eligible travel at 32 cents per mile.

This increased charitable mileage rate is only for Katrina-specific services. Travel for other charities at any time last yeat is worth the standard 14 cents a mile on your return.

Consult IRS regulations www.irs.gov or your tax preparer if more information is needed.

No comments :