<topic sku="biz" tNum="288553" author="a-gabr" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn about the standard mileage rate</title><category></category><klink type="cncpt">Tell me about the standard mileage rate</klink></index>
<content>
<p>If you use a vehicle for business purposes, you can either deduct the business portion of your actual vehicle expenses such as gas, oil, and depreciation, or you can use the IRS standard mileage rate. If you use the standard mileage rate, Money multiplies the miles you drove for business by this rate, and then adds any parking fees and tolls. The result is your deduction for vehicle expenses.</p>
<p>The standard mileage rate generally changes every tax year. For 2001, the rate is 34.5 cents per mile; for 2002, the rate is 36.5 cents per mile. You can change the mileage rate for current IRS rules if necessary.</p>
<extend>
<tease><showme/></tease>
<reveal>
<ol>
<li>Go to the Business view of the Home page.</li>
<extend>
<tease><showme/></tease>
<reveal>
<ol>
<li>Near the upper left, click <emph>Home</emph>.</li>
<li>In the <emph>Choose a view</emph> box, click <emph>Business</emph>.</li>
</ol>
</reveal>
</extend>
<li>Under <emph>Business Tasks</emph>, click <emph>Record mileage for a trip</emph>.</li>
<li>Click <emph>Mileage Rates</emph>.</li>
<li>Select the Tax Year, and then enter the mileage rate per dollar. For example, for 34.5 cents, enter .345.</li>
<li>Click <emph>OK</emph>.</li>
</ol>
</reveal>
</extend>
<p>You can use the standard mileage rate whether you own or lease a vehicle, subject to certain IRS rules. For specific rules, current rates, and other information, talk to your accountant or see IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses on the <alink type="xtnl" href="http://www.irs.gov">IRS Web site</alink>.You can also find the latest standard mileage rate in the IRS instructions for Form 1040-ES, Estimated Tax for Individuals.</p>
</content>
<footer>
<extend>
<tease>I don't see <emph>Business Tasks</emph> on the Business view of the Home page.</tease>
<reveal>
<p>You may have customized this Home page view.</p>
<ol>
<li>In the left pane, click <emph>Customize this page</emph>.</li>
<li>In the <emph>View</emph> box of the customization dialog, click <emph>Business</emph>.</li>
<li>Click <emph>Restore Default</emph>, and then click <emph>OK</emph>.</li>
</ol>
<p>You should now be able to see the appropriate link.</p>
