IRS Announces 2007 Mileage Rates

Here they are folks, the standard mileage rates for 2007. These go into effect on January 1, 2007:

Miles driven for business: 48.5 cents per mile
Miles driven for medical or moving reasons: 20 cents per mile
Miles driven for qualified charity reasons: 14 cents per mile

What this means for you: If your you drive 10K miles for your business, you can deduct $4850 from business income. Think of it this way: for every business mile you drive, you can deduct almost half a dollar. Those business miles really add up quickly!

For tax reasons, it's very important to keep good records of the miles driven. You don't want them disallowed if you get audited. Get a small spiral notebook, keep it in your car, and record the beginning and ending odometer readings each time you travel for one of the above reasons. Your pocketbook will thank you.

For more information on the announcement, visit IRS News.