Mileage Rate by Tax Year
Mileage Rates beginning January 1, 2009
The standard mileage rates for the use of a car, van, pickup, or panel truck:
55 cents per mile for business miles driven
24 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The business standard mileage rate may not be used for a vehicle after using any
depreciation method under the Modified Accelerated Cost Recovery System (MACRS)
or after claiming a Section 179 deduction for that vehicle.
Furthermore, business standard mileage rates cannot be used for vehicles used for
hire or for more than four vehicles used simultaneously.
The option of calculating the actual costs of using their vehicle rather than using
the standard mileage rates remains.
Mileage Rates between July 1, 2008 - December 31, 2008
Mileage Rate increases to 58.5 cents per mile.
The increased gas prices have a major impact on individuals who use their automobile
for business use. The new standard business mileage reimbursement rate for July
1, 2008 - Dec. 31, 2008 is 58.5 cents. This rate is used as an option to compute
deductible business related automobile costs. (If you are using your automobile
for private and business use). The alternative method is tracking actual automobile
costs.
The mileage rate for automobile use for computing medical or moving automobile expenses
for July 1, 2008 - Dec. 31, 2008 will increase to 27 cents/mile.
The automobile use for charitable organizations is 14 cents/mile.
Remember that mileage rates are not the extent of your deductible expenses for the
business use of your car. Remember to include parking and tolls under deductible
expenses for the business use of you car.
Mileage Rates between January 1, 2008 - June 30, 2008
The 2008 optional standard mileage reimbursement rate used to calculate the deductible
costs of operating an automobile for business, charitable, medical or moving purposes
will be as of Jan. 1, 2008 for the use of a car (including vans, pickups or panel
trucks): 50.5 cents per mile for business miles driven; 19 cents per mile driven
for medical or moving purposes; and 14 cents per mile driven in service of charitable
organizations.
The new rate for business miles compares to a rate of 48.5 cents per mile for 2007.
The new rate for medical and moving purposes compares to 20 cents in 2007. The rate
for miles driven in service of charitable organizations has remained the same.
The standard mileage rate for business is based on an annual study of the fixed
and variable costs of operating an automobile; the standard rate for medical and
moving purposes is based on the variable costs as determined by the same study.
Runzheimer International, an independent contractor, conducted the study for the
IRS.
The mileage rate for charitable miles is set by law.
A taxpayer may not use the business standard mileage rate for a vehicle after using
any depreciation method under the Modified Accelerated Cost Recovery System (MACRS),
after claiming a Section 179 deduction for that vehicle, for any vehicle used for
hire or for more than four vehicles used simultaneously. Revenue Procedure 2007-70
contains additional information on these standard mileage rates.
See IRS Publication 463
for additional information on travel and transportation expenses.