If you own or lease your car and use it for business, be sure you deduct the actual operating costs, such as gas, repairs, license tags, and depreciation, orthe flat IRS (I-R-S) allowance. The flat IRS allowance for the 2004 tax year is 37.5 cents per mile for all business miles. If you travel or entertain for business reasons and are not reimbursed by an employer, you may be able to deduct some or most of your expenses. The deduction for business meals and entertainment is capped at 50 percent of theamount you spend.Also, you can deduct donations to religious, charitable, educational, and other philanthropic (fill-ann-THRAW-pick) organizations that have been approved by the IRS (I-R-S). Donations to federal, state, and local governmental bodies are also deductible.You're also permitted under federal tax laws to claim the amount you pay for state and local income taxes as deductions. In an IRA, you're allowed to put aside up to $3,000 a year from employment income. You invest the money, and you don't have to pay any taxes on the investment growth until you're retired, when your tax rates will probably be lower than they are now.If you need specific advice on strategies to cut your taxes, please consult a tax advisor or call the toll-free number for Federal Tax Information and Assistance at 1-800-829-1040.
