The Internal Revenue Service has issued the optional standard mileage rates for calculating the deductible costs next year of operating an automobile for various purposes.
Beginning Jan. 1, 2008, the standard mileage rates for using a car, van, pickup or panel truck is 50.5 cents per miles for business purposes. For medical or moving purposes, the rate is 19 cents per mile. For driving in the service of charitable organizations, the rate is 14 cents per mile.
In 2007, the rate was 48.5 cents for business miles, 20 cents for medical or moving purposes, and 14 cents for charitable purposes.
The IRS commissions an annual study to set the standard mileage rate for business, medical and moving purposes, but the charitable purpose rate is set by law. Taxpayers cannot use the business standard mileage rate after using any depreciated method under the Modified Accelerated Cost Recovery System after claiming a Section 179 deduction for any vehicle used for hire or for more than four vehicles used simultaneously. For more information, see Revenue Procedure 2007-70.
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