IRS Increases Mileage Rates through December 31, 2008
The Internal
Revenue Service announced an increase in the optional
standard mileage rates for the final six months of
2008. Taxpayers may use the optional standard rates to
calculate the deductible costs of operating an
automobile for business, charitable, medical or moving
purposes.
The rate
increased to 58.5 cents a mile for all business miles
driven from July 1, 2008 through December 31, 2008.
This is an increase of eight (8) cents from the 50.5
rate in effect for the first six months of 2008 as set
forth in Rev. Proc. 2007-70.
In recognition
of recent gasoline price increases, the IRS made this
special adjustment for the final months of 2008. The
IRS normally updates the mileage rates once a year in
the fall for the next calendar year.
The
optional business standard mileage rate is used to
compute the deductible costs of operating an automobile
for business use in lieu of tracking actual costs. This
rate is also used as a benchmark by the federal
government and many businesses to reimburse their
employees for mileage.
