Tax questions...

[UteStar]

My wife does quite a bit of driving for her job (she is a realtor). Does anyone know the amount per mile that you can deduct? I don't think that she deducts the amount she paid for the gas but that you get X amount of credit per mile driven. Anyone know what that number is. Yes, I am going to get a tax professional but I kinda want to have an estimate of it all before it is done because we will have quite a few deductions (medical, tithing, office, etc.). Thanks.

[Mormon Red Death]

My wife does quite a bit of driving for her job (she is a realtor). Does anyone know the amount per mile that you can deduct? I don't think that she deducts the amount she paid for the gas but that you get X amount of credit per mile driven. Anyone know what that number is. Yes, I am going to get a tax professional but I kinda want to have an estimate of it all before it is done because we will have quite a few deductions (medical, tithing, office, etc.). Thanks.

$.485 a mile....

[Mormon Red Death]

Standard Mileage Rates
Beginning January 1, 2007, the allowable deductions for the standard mileage rate are as follows:

Business miles. The standard mileage rate for the cost of operating your car increases to 48.5 cents a mile for all business miles driven.
Charitable services. The standard mileage rate allowed for use of your car when you use your car to provide charitable services to a charitable organization remains at 14 cents a mile.
Medical reasons. The standard mileage rate allowed for use of your car for medical reasons increases to 20 cents a mile.
Moving. The standard mileage rate for determining moving expenses increases to 20 cents a mile.

[UteStar]

Is that 48.5 cents a mile for 2006? If not, does anyone know what the figure is for the 2006? Thanks to you both for your hel.

[Mormon Red Death]

Energy costs have been on the rise, and the IRS has adjusted mileage rates to reflect that. The IRS increased the mileage rate for 2006 to 44.5 cents per mile for the business use of your car. This is an increase over the standard 40.5 cents per mile that applied for most of 2005.

If you used your car to get medical care or to move, you can deduct 18 cents per mile. This rate also was increased over last year's 15 cents per mile.

Taxpayers who used their car to provide charitable services to a qualified charitable organization can still receive credit for their mileage. That rate is 14 cents per mile. A rare exception is made for taxpayers providing Hurricane Katrina relief services. If the organization you were working for was providing relief related to Katrina, the standard mileage rate of 32 cents per mile will apply.

[UteStar]

Thats good then...so I can use the 44.5 cents a mile for the entire 2006 year or do I have to split it throughout the year because they raised it during the middle of the year? Sorry that I am an idiot and I really appreciate the help.

[Mormon Red Death]

Thats good then...so I can use the 44.5 cents a mile for the entire 2006 year or do I have to split it throughout the year because they raised it during the middle of the year? Sorry that I am an idiot and I really appreciate the help.

I am not a tax professional but you should be ok using that for the whole year