How to deduct your car for business.

You can use one of two choices when writing off automobile expenses:

1. You can take the standard mileage rate at 44.5 cents per business mile for 2006 and 48.5 cents for 2007, plus interest on the car loan, tolls and parking.

2. Or you can figure out what percentage of your driving is for business and use the actual expenses to calculate your automobile expenses. Using that percentage you can write off:

• Automobile fuel.

• Repairs & Maintenance.

• Oil, Tires, Batteries, car washes.

• Auto Registration and inspection sticker.

• Personal Property tax.

• Depreciation.

Full amount of business parking and tolls.

In either case, you'll need to keep track of both business and all other miles.

You also need to keep written evidence to support your deduction.

There is no simple answer to the age-long question of which method is best for you. There are many variables that need to be considered.