An automobile is quite an expense, especially for those of you who own more than one. The mileage reimbursement rates for 2010 are 50 cents for business, 14 cents for charitable and 16.5 cents for moving/medical miles. For 2009, the mileage reimbursements rates were 55 cents per business mile, 14 cents per charitable mile, and 24 cents per moving/medical mile.
Another common way to increase deductions is to include both cars (if you own more than one car) in your deductions. This is possible since the business miles driven determine business use. To figure business use, divide the business miles driven by the total miles driven. You can do this for each car driven for the business and can bring significant deductions.
This is simply a wonderful way to save, but remember: in order to be effective, a consistent mileage log should be kept. Consider meeting with a professional to determine the most efficient way of tracking mileage and other costs. Happy driving!
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