When may a minister use the standard mileage rate to deduct auto expenses?
If your employer pays you a fixed mileage allowance of 34.5 cents (36.5 cents in 2002) per mile or less and your provide your employer with the time, place, and business purpose of your driving, you have made an adequate accounting of your automobile expenses. If your employer does not reimburse you for auto expenses or reimburses you under a nonaccountable plan, you may deduct business miles on Form 2106. The totals from Form 2106 are carried to Schedule A, Miscellaneous Deductions, subject to the 2% AGI limitation. If you are self-employed for income tax purposes, report these expenses on Schedule C. The mileage rate is based on the governments estimate of the average cost of operating an automobile. Depending upon the age and cost of the car, the mileage rate may be more or less than your actual auto expense. For 2001, the standard mileage rate, which includes depreciation and maintenance costs, is 34.5 cents per mile. If you use the mileage rate, you also may deduct parking fees an
