Here’s another tax tidbit from Ron Mueller’s newsletter…

2007 VEHICLE-USE DEDUCTION CLIMBS

If you use the Standard Rate Method for claiming tax deductions for use of your personal vehicle for business purposes, the rate will increase to 48.5 cents per mile, effective January 1st (up from 2006 level of 44.5 cents).

This might be a good year to keep track of your actual vehicle operating costs. Then you can figure it both ways next April, and chose the deduction method that works best for you. (See Chapter 7 of “It’s How Much You KEEP, That Counts! Not how much you Make.”)

Moving and travel to medical appointments will jump about 10% to a new level of 20-cents/mi. But using your vehicle for charitable work will remain at the 2006 level, 14 cents/mile.