IRS Increases Mileage Rate

On June 23, 2008, the Internal Revenue Service announced an increase to the optional standard mileage rates.

For the last half of 2008, the optional standard mileage rate will increase from 50.5 cents to 58.5 cents per mile. Taxpayers have the option of using the optional standard mileage rate to calculate deductible costs of operating an automobile for business purposes.

The rate for computing the deductible medical or moving costs have also increased by 8 cents to 27 cents per mile, however the rate for providing services for charitable organizations has remained unchanged at 14 cents per mile. For further information you can go to the IRS announcement at: https://www.irs.gov/pub/irs-drop/a-08-63.pdf.