This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
Standard mileage rate.
For 2006, the standard mileage rate for each mile of business use is 44½ cents.
Meal expenses.
The percentage of meal expenses that may be deducted by employees subject to the Department of Transportation (DOT)
hours of service limits has
increased to 75% for 2006.
Alternative motor vehicle credit.
You may be able to take a credit on your tax return if you place an alternative motor vehicle in service in 2006.
See Form 8910 for the types of
vehicles that qualify. You can no longer take a deduction for clean-fuel vehicles.
Use Form 2106 if you were an employee deducting ordinary and necessary expenses for your job. See the flowchart below to find
out if you must file
this form.
An ordinary expense is one that is common and accepted in your field of trade, business, or profession. A necessary expense
is one that is helpful
and appropriate for your business. An expense does not have to be required to be considered necessary.
Form 2106-EZ.
You may be able to file Form 2106-EZ, Unreimbursed Employee Business Expenses, provided you:
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Use the standard mileage rate (if claiming vehicle expense), and
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Were not reimbursed by your employer for any expense (amounts your employer included in box 1 of your Form W-2 are not considered
reimbursements for this purpose).
See Form 2106-EZ to find out if you qualify to file it.
You cannot deduct expenses for travel (including meals unless you used the standard meal allowance), entertainment, gifts,
or use of a car or other
listed property, unless you keep records to prove the time, place, business purpose, business relationship (for entertainment
and gifts), and amounts
of these expenses. Generally, you must also have receipts for all lodging expenses (regardless of the amount) and any other
expense of $75 or more.
For more details about employee business expenses, see:
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Pub. 463, Travel, Entertainment, Gift, and Car Expenses.
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Pub. 529, Miscellaneous Deductions.
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Pub. 587, Business Use of Your Home (Including Use by Daycare Providers).
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Pub. 946, How To Depreciate Property.
