Job-related Driving

• The IRS allows you to deduct some of your lease payments when you use the vehicle for the benefit of your employer. This doesn't include your commute to and from work each day; rather, your employer only benefits when you use the car for work-related tasks. For example, if after you arrive at your office your boss asks you to go meet with a client, using your vehicle is for the benefit of your employer. However, picking up your suits at the dry cleaner is personal, even if you only wear them at work.
  
  

Job-related Car Expenses

• There are two methods for calculating your deductible job-related car expenses on Schedule A. One method is to keep track of all car expenses during the year, such as your annual lease payments, car insurance, gas, oil and repairs, and calculate the percentage of those costs that relate to work. One way to allocate your car expenses is by using the ratio of work-related miles you drive to total annual miles you drive for all purposes. Alternatively, you can use the IRS standard mileage rate, which in 2011 is 55 cents per mile, to calculate the deduction. This method requires less recordkeeping since you can simply keep track of all work-related miles you drive during the year and multiply the number by the standard mileage rate to arrive at your deduction.
  
  

Charitable Volunteer Work

• You can never claim a charitable deduction for the value of your time when volunteering, but you can, however, claim a deduction for the actual expenses you incur, including the use of a leased personal vehicle. The IRS also allows you to use the standard mileage rate to calculate your deduction. However, the per-mile rate is much lower for charity work than it is for work-related driving. You can include the miles you drive to and from your home to the charity's location plus all miles you drive after you arrive. For example, if you deliver meals to the elderly using your own vehicle, you can include all miles from the time you leave home until you return, less any miles you drive during the day for personal purposes.
  
  

Medical-related Driving

• When you use the vehicle to drive to the doctor, pick up medication or for any other medical issue, the IRS allows you to include your transportation expenses in your medical deduction on Schedule A. For example, if you drive 20 miles round trip to get to a doctor's appointment, you can deduct the actual gas and oil you consume on the trip. However, figuring this out can become more work than it's worth, which is why the IRS provides a third standard mileage rate for medical-related driving.