| Whether or not you can deduct tolls and mileage on | | | | such as depreciation, insurance, repairs, fuel, tolls, and |
| your taxes depends on when you paid the tolls and | | | | fees. Then, you must keep a record of all the miles |
| put on the mileage in question. For instance, you cannot | | | | you drove during the year and determine what |
| deduct tolls or mileage for driving from home to work. | | | | percentage of those miles were driven for qualified |
| You can only deduct tolls and mileage incurred during | | | | business purposes. Then, you multiply that percentage |
| business driving. Business driving is the driving you do | | | | times the cost of operating your vehicle. In example, if |
| from one client to another, driving from work to school | | | | your costs to drive the vehicle were $5000 and the |
| for company related training, or driving from one | | | | car was driven a total of 10,000 miles, with 5,000 of |
| employer to another. Any tolls or parking fees paid or | | | | those miles used for business, you would multiply 50% |
| miles driven while performing these tasks are tax | | | | X $5500 for a total of $2,750. |
| deductible. | | | | There are also deductions allowed for medical mileage, |
| The IRS mileage deduction for 2009 is 55 cents per | | | | charitable mileage, and moving mileage. If you drive to |
| mile. Tolls and parking fees are deductible at the rate | | | | receive medical care, you can deduct that mileage at |
| they were incurred. | | | | the rate of 24 cents per mile. If your new job is at |
| You should keep accurate records to support all of | | | | least 50 miles away from your prior residence, you |
| your driving claims. The records should declare the day | | | | can deduct 24 cents per mile for the move. If you |
| and date of the drive, the distance of your drive, | | | | drive to a site to perform charitable work or if you use |
| where your drive began, where your drive ended, and | | | | your car to do driving for a charity, you can deduct |
| the purpose of your trip. | | | | that mileage at 14 cents per mile. |
| The IRS offers you the option of determining what it | | | | Whenever deducting tolls, parking fees or mileage, |
| actual costs you to drive your vehicle, rather than | | | | remember to keep very accurate records. The IRS is |
| relying on their mileage rate. To do this requires quite a | | | | known to be tough when it comes to driving |
| bit of bookkeeping, as you will need to keep track of all | | | | deductions. |
| costs associated with using your vehicle for business, | | | | |