The IRS standard mileage rate for the current tax year is 50.5 cents per mile. Miles driven for medical purposes or moving are deductible at 19 cents per mile while mileage incurred for charitable organizations are deductible at 14 cents per mile.
If oil prices continue to rise (all indications are that gasoline prices will remain high), the U.S. Congress may promote a mid year rate adjustment as was instituted in 2005. Check back with this blog for updates regarding mileage rates.
Mileage rates for previous tax years (back through 2003) are available at: http://www.mileagebooks.com/IRS-Tax-Regulations/IRS-Tax-Regulations/Current-Standard-Mileage-Rate.
Thursday, April 10, 2008
2008 Standard Mileage Rate
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3 comments:
The IRS should increase the mileage rate because more than just the cost of gasoline is making it more expensive to drive a car. Maintenance and parts costs are rising as well.
I couldn't agree more. In fact, I think that the rate will definitely be adjusted if gas prices remain high - probably sometime before the general election (surprise, surprise).
Business owners may want to investigate whether expensing their vehicles might be a better deal tax wise than using the standard mileage rate (even if interest payments are not among expenses incurred).
From experience though, I can tell you that older cars (especially those that are already paid for) provide better tax deductions vs. actual costs when the standard mileage rate is utilized.
Hey, I checked out that mileagebooks.com website. First book I've seen that can be used for multiple years since the pages aren't dated by the year. Handy size too, ordered 6 so we can hand them out to the family. Thanks Taxmiles. Great info.
Andi/Colorado Springs
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