IRS Announces
2008 Standard Mileage Rates; Rate for Business Miles Set at 50.5 Cents per Mile
WASHINGTON — The Internal Revenue Service today issued the 2008
optional standard mileage rates used to calculate the deductible costs of operating
an automobile for business, charitable, medical or moving purposes.
Beginning
Jan. 1, 2008, the standard mileage rates for the use of a car (including vans,
pickups or panel trucks) will be:
- 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.
