Standard mileage rates
· 40.5 cents a mile for business miles.
· 14 cents a mile for services provided to charitable organizations, but...
· 29 cents a mile for charitable services related to Hurricane Katrina, if driven after Aug. 24, 2005, and before Sept. 1, 2005.
· 15 cents a mile for medical reasons.
· 15 cents a mile for moving. But because of the "gas crisis" near the end of the year, some of the rates changed. Here are the rates for Sept. 1, 2005, through Dec. 31, 2005:
· 14 cents a mile, still, for charity.
· 34 cents a mile for Katrina-related charity.
· 22 cents a mile for medical reasons.
· 22 cents a mile for moving.In effect, and in order to claim the appropriate deduction, you'll have to track your mileage by dates ... both before and after Sept. 1.
Publishers Note: Using your Auto for Business purposes is BIG Business within itself. Just think if you drove 3000 miles for your Business (this is low) before September 1, 2005------ Your deduction for that period of time is $1,200.
What do you need to do to take such a deduction? Write down your mileage, own your car and not use it for hire. (Meaning: This deduction does not apply to the cab driver who leased the cab from the cab company)
Writing down your mileage is very important. I cannot express this enough. When you get into the car for business purposes. Write down the mileage. If IRS audits you, you will need your log of miles to secure your mileage deduction. You will need to write down starting miles and ending miles and where you were going and why won't hurt.
This short message has been brought to you by www.Taxeswilltravel.com For more information visit: www.irs.gov keywords: prior tax years, 2005, mileage rate