Mileage Rate Increase Announced
(June 30, 2008)
On June 23, 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 expenses.
The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008.
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.
The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
| Purpose | Rates 1/1 through 6/30 2008 |
Rates 7/1 through 12/31 2008 |
| Business | 50.5 |
58.5 |
| Medical/Moving | 19 |
27 |
| Charitable | 14 |
14 |
If you have any questions regarding the mileage rates, please contact us at info@parentenet.com.
