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Re: Sole Proprietorship Tax Question
 Originally Posted by jotay
Actually that depends. In my situation at my job when I write off my mileage the IRS does not allow you to write of the miles from home to work only the miles you drive from your first stop to your last, then from the last to home is not allowable.
Yep, that's how it works for everyone. From the first house to the last house acts as a tax deduction but to and from your house does not.
And there are two methods for deduction. The actual amount is the total amount you spent on "business travels". The standard deduction is the miles you drove multiplied by a certain value the IRS releases every year (44.5 cents for 2006).
Just remember, you can deduct ALL types of automobile related expenses. For example, if you drove 10,000 miles in 2006, and 5,000 of those miles were business miles, half of all automobile related expenses can be deducted (oil changes, insurance, new parts, licensing fees etc).
If you kept receipts on everything, it is typically best to use actual expenses, as they usually give a bigger write off than the standard deduction.
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