The amount you can deduct for use of your vehicle falls into three categories:
1. Business Use
2. Medical care transportation
3. Moving for business purposes
4. Service of charitable organizations

The IRS generally changes the rate annually, but rarely does so mid-year ­ except for this year! So here goes…

FOR JAN.1 THRU AUG. 31, 2005:
Business use: 40.5 cents/mile
Medical care: 15 cents/mile
Moving: 15 cents/mile
Charity: 14 cents/mile

FOR SEPT. 1 THRU DEC. 31, 2005:
Business use: 48.5 cents/mile
Medical care: 22 cents/mile
Moving: 22 cents/mile
Charity: 14 cents/mile

BEGINNING JAN. 1, 2006:
Business use: 44.5 cents/mile
Medical care: 18 cents/mile
Moving: 18 cents/mile
Charity: 14 cents/mile

Note: Special mileage rates apply for Katrina-related charitable mileage. See Revenue Procedure 2005-78, which you can download at www.irs.gov.

Tax Reduction Resources