Driving between job sites is deductible. So is driving between your home and a temporary job site, or to meetings, interviews, and seminars. Commuting between your home and a regular place of business is generally not tax deductible (unless you have a home office.)

When you calculate your auto deduction, you can either base the deduction on the standard mileage rate of $.485 per business mile (in 2007 increasing by a lousy two cents to $.505 in 2008) multiplied by the total business miles driven during the year. Or you can add up all your automobile expenses - including gas, insurance, repairs, parking at home, and your lease payments if you lease your car or a factor for depreciation if you own your car - and multiply that total by the percentage of miles driven during the year that are businss miles.

I included an example of this math in an article on the December 2006 newsletter available at: http://www.mdtaxes.com/news1206.html.

Zip Code: 01801