Important Changes

Standard mileage rate. The standard mileage rate for the cost of operating your car in 2000 is 32 1/2 cents a mile for all business miles.

Car expenses and use of the standard mileage rate are explained in chapter 4.

Depreciation limits on cars. Generally, the total section 179 and depreciation deductions you can claim for a car that you use in your business and first placed in service in 2000 is $3,060. Depreciation on cars and the section 179 deduction are covered in chapter 4.

Exceptions for clean-fuel cars. There are two exceptions to the depreciation limits for cars that run on clean fuel. See Exceptions for clean-fuel cars under Depreciation Limits in chapter 4.

Meal expenses when subject to "hours of service" limits. Generally, you can deduct only 50% of your business-related meal expenses while traveling away from your tax home for business purposes. You can deduct a higher percentage if the meals take place during or incident to any period subject to the Department of Transportation's "hours of service" limits. (These limits apply to certain workers who are under certain federal regulations.) The percentage is 60% for 2000 and 2001 and it gradually increases to 80% by the year 2008. Business meal expenses are covered in chapter 1.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843- 5678) if you recognize a child.

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