IRS increases standard mileage rate
June 24, 2008 – 2:26 pmIt seems gas prices are affecting every aspect of our lives from rising food costs to, of course, expensive transportation. However, you and your clients may get some relief when it comes to transportation. The IRS announced on Monday that there is 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 will increase from 50.5 cents to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This special adjustment of eight cents for the remainder of 2008 is to compensate for the recent gasoline price increases. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
One Response to “IRS increases standard mileage rate”
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By taxguru on Jun 26, 2008