Standard mileage rate for 2006 and 2007

Energy costs have been on the rise this past year and the IRS has adjusted mileage rates to reflect that. The IRS increased the standard mileage rate for 2006 to 44.5 cents per mile for the business use of your automobile.

For medical care or moving expense you are allowed to use 18 cents per mile.

Taxpayers who use their car to provide charitable services to a qualified charitable organization can deduct 14 cents per mile. If you were volunteering for Katrina relief you can deduct 32 cents per mile.

Be sure that you keep an accurate record of your automobile use.Include the beginning and ending odometer readings, the date that you made the trip, and the specific reason for claiming the deduction.

In 2007 the standard mileage rate was increased for business use of your automobile to 48.5 cents per mile.