Small-businesses that use the optional standard mileage rate to calculate the deductible costs of operating a vehicle got good news recently from the IRS. Beginning Jan. 1, 2007, the rate is 48.5 cents for each business mile driven. That’s up from 44.5 cents a mile in 2006. Just be sure to substantiate all of your deductible miles. Use a mileage log to record the date, the locations you drive to and from, the purpose of the trip and the number of miles driven.

More blogs about home business tax savings.