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Easy Street

A new IRS regulation makes it a snap to calculate and report company vehicle deductions on your next tax return.

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This story appears in the March 2004 issue of Entrepreneur. Subscribe »

There's good news from the irs for entrepreneurs who use four or fewer vehicles at the same time for business purposes. A new IRS regulation now allows you to use the standard mileage rate when calculating a tax deduction for those vehicles.

To use this method, calculate the fixed and operating costs of the vehicle by multiplying the number of business miles traveled during the year by the standard mileage rate. The IRS has increased the standard mileage rate to 37.5 cents per mile for 2004, up from 36 cents in 2003.

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