Travel Expenses

• Car mileage is deductible for a certain rate per mile. The amount is determined annually. This deduction includes the cost of gasoline, oil, maintenance and depreciation of the vehicle. Food expenses are deductible when traveling, depending on the distance. Short travel distances may only allow lunch expenses as deductible, as it's assumed the taxpayer can return home for dinner and breakfast. Other trips farther from home will allow deductions of all meals up to a certain amount. Accommodation expenses are also deductible.
  
  

Home Business Expenses

• Anyone operating a home business or using a portion of their home for business, such as a salesman having a home office, can deduct that portion of the home from their taxes. The deduction is based on a good-faith estimate of the percentage of the home used for business. The amount can vary from 10 to 25 percent, depending on the size of the home office or workshop and the overall size of the home. This deduction also includes percentages spent on the business for utilities.
  
  

Deducting Calculated Depreciation

• Although the mileage deduction covers vehicle depreciation, other pieces of equipment and real estate used for business can be depreciated over time and deducted from taxable amounts. Computers, typewriters, copiers, fax machines, printers and other paper-handling machines can all qualify. Larger business can deduct any machinery used for the business, whether it's printing presses in a print shop or a large lathe used by a carpenter. The deprecation rate is calculated based on percentages established by taxing authorities. Some equipment depreciates rapidly (vehicles), whereas farm equipment or heavy industry machinery may be depreciated over several years.
  
  

Other Expenses

• Anyone can make deductions based on tax regulations. Parents can deduct the cost of raising children, home mortgage interest and certain home improvements. People with certain physical conditions can write off the cost of treatment if the diagnosis qualifies. Donations to recognized charities can also be a write-off up to certain percentages.