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Submitted by: Amy Rose Herrick
Amy's skills combine Tax Planning, Income structuring, Cash Flow, Divorce Settlements, Debt configuration, Estate Plans, Portfolio Planning and Distribution Alternatives. She assisted an institutional investor base from '86-90, then focused her practice in '91 to the present for individuals and small business exclusively. Amy holds various professional licensing in several states. She has provided planning advice to multiple media outlets including Newsweek. Interviews are available.
The IRS announced an increase to 48.5 cents per mile for business travel. The 2006 level was a slightly lower 44.5 cents per mile.
This rate applies to the use of your car driving between job sites, between your home and temporary job site, conferences, to job interviews and business appointments.
W-2 Employees
For driving costs not reimbursed by your employer, these miles will be included if you are eligible on your Schedule A miscellaneous itemized deductions for amounts that exceed 2% of your income. There are other miscellaneous deductions here this amount may be combined with to reach and exceed the 2% minimum. Use form 2106.
Self Employed Schedule C Filers
These will be reported under auto expenses on your schedule C form to reduce your taxable income with all your other operating expenses. Be certain not to under report your actual mileage by failing to record those trips to purchase office supplies, post office and other business operating supply trips. Keep a small notebook in each vehicle to record every trip.
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