IRS mileage rate goes up | Arkansas Blog

Monday, June 23, 2008

IRS mileage rate goes up

Posted By on Mon, Jun 23, 2008 at 2:10 PM

I notice that the IRS has announced that the deduction rate for business mileage will go up to 58.5 cents a mile from July 1 through the end of the year.

What's your company pay for business mileage?

IRS NEWS RELEASE

WASHINGTON — The Internal Revenue Service today 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 purposes. 

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, as set forth in Rev. Proc. 2007-70.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

"Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile," said IRS Commissioner Doug Shulman. "We want the reimbursement rate to be fair to taxpayers."

While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

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.

The new rates are contained in Announcement 2008-63 on the optional standard mileage rates.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

 

From the ArkTimes store

Favorite

Comments (15)

Showing 1-15 of 15

Add a comment

 
Subscribe to this thread:
Showing 1-15 of 15

Add a comment

More by Max Brantley

Readers also liked…

  • LR speakers blast state board for double standard

    A series of speakers, beginning with Sen. Joyce Elliott, denounced what they saw as a hidden agenda favoring charter schools at the state Department of Education and asked the state Board of Education for return of local control.
    • May 12, 2016
  • Police identify two women found fatally shot on Chicot Road

    Little Rock police have identified two women found dead of gunshot wounds in an SUV parked next to a vacant trailer in a mobile home park at 11500 Chicot Road.
    • May 16, 2017
  • Kenneth Starr: A comment from Betsey Wright

    Betsey Wright, former President Bill Clinton's chief of staff when he was Arkansas governor, responds bitterly to a New York Times article today quoting Whitewater Prosecutor Kenneth Starr's warm words about Clinton. She can't forget the lives Starr ruined in Arkansas.
    • May 24, 2016

Most Shared

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation