Calculation of Mileage?

Question

Mr X is a Sales representative(self employed). He drove 26000 miles for business in 2006. His commute is 1200 for the year and personal miles were 3000 for 2006. How much is deductible on schedule C. So how do I report that on the IRS form?
Likewise his Auto expense was $500. Can he deduct that in Schedule C.

Answer 1

He can claim actual expenses OR the mileage rate. If he takes the mileage rate, it's on the 26,000 miles. If he takes actual costs he totals up all costs and multiplies by 26,000/30,200.