- Certain business owners can deduct miles driven for company purposes during the year. For instance, if you or an employee travels to visit clients via car or to promote a product, those expenses may be deductible. However, this car deduction does not include the miles driven for commuting between your job and home. As of 2011, the standard mileage deduction rate for business-related driving was 51 cents per mile.
- In some cases you can also deduct miles that you drive for the purpose of charity. For instance, if you drive to and from a clothing donation drive, fundraising event or to volunteer at a church, that may count as charity mileage. The charity must be an official federal and state recognized charitable organization. As of 2011, the standard mileage deduction rate for charity-related tasks was 14 cents per mile.
- If you're required to move for work, you may be eligible to take a moving expense deduction. To take the deduction, you must pass a few key tests including the 50-mile minimum check -- the new job location would require a commute of an additional 50 miles or more -- and the time check -- you must work full-time for at least 39 weeks out of the first 12 months after moving. One expense you can deduct is mileage for driving your car to the new home. As of 2011, the standard mileage deduction rate for a moving expense deduction was 19 cents per mile.
- Regardless of the type of mileage rate deduction you plan to take, it is wise to keep records of the trips. You can create a mileage log in a journal or ledger book to keep in your car then transfer the information to a spreadsheet program. In your log, include the date, purpose of the trip, description of your activities, destination information, mileage used and any other pertinent information.
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