Get better tax mileage in ’07 — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
The IRS has bumped up the standard mileage rate for business travelers in 2007. (IRS revenue procedure 2006-49) For the 2007 tax year, the IRS has raised the write-off to 48.5 cents per mile: four cents more per mile over the 2006 rate. Example: If you travel 10,000 business miles in 2007 and incur $500 in related parking fees and tolls, you can deduct $5,350 (10,000 times 0.485, plus $500). Note: Once you start using the actual-expense method for a vehicle, you generally can’t switch to the standard mileage rate.