1. How much can I deduct per mile for business
use of my car?
55.0 cents per mile.
2. Can I also deduct actual costs of using my car for business?
The standard mileage rate takes the place of all expenses except parking and tolls. You may add up the other expenses (gas,repairs and maintenance, registration,depreciation/lease payments, etc.) apply the business use percentage as determined by mileage and use it if the deduction is higher. Remember you must use the same method each year thereafter.
3. Can I deduct expenses for entertaining clients?
Yes, but only 50% of the actual expense and you must have a bonafide business purpose.
***Remember: It is critical to consult your tax advisor for the latest changes in the tax laws.