IRS Increases Mileage Rates
Posted by taxguru on June 23, 2008
At last, IRS has realized that the 50.5 cents per mile standard rate for business miles is woefully out of kilter with the current fuel prices, so they just announced that as of July 1, 2008, the rate will jump by eight cents to 58.5 cents per business mile.
The standard deduction for medical and moving costs will also increase as of July 1, to a whopping 27.0 cents per mile.
And, as always, the rate for using a vehicle for charitable purposes will remain at the statutory limit of 14.0 cents per mile because our imperial rulers locked that rate into the law.
This shows once again why it is important to keep track of actual expenses rather than rely on the out-dated standard rates when calculating vehicle deductions.
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