- Standard Mileage Rate (50 cents per business mile driven in 2010, 51 cents for 2011)
- Actual Expense Method (calculate total costs of maintaining and driving your car, then multiply by the percentage of business miles to total miles driven in that car)
"The main thing the IRS will want to see in supporting this deduction is your mileage log," says NASE National Tax Advisor Keith Hall. "You must keep track of the miles you drive for business, whether it’s on your computer or handwritten in a notebook."
The NASE iPhone application TripAlly tracks, calculates and records miles driven to create the ultimate tax-deduction mileage log. Whether you need to track miles for your small business, charitable contributions, for employee reimbursement, or simply because you want to know, TripAlly can help. Download TripAlly at the iTunes App Store.
Click here for more details on TripAlly. Also check out IRS Publication 463, Travel, Entertainment, Gift and Car Expenses for more detail.