WASHINGTON
— The Internal Revenue Service today issued the 2009 optional standard mileage
rates used to calculate the deductible costs of operating an automobile for business,
charitable, medical or moving purposes.
Beginning
on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups
or panel trucks) will be:
- 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
new rates for business, medical and moving purposes are slightly lower than rates
for the second half of 2008 that were raised by a special adjustment mid-year
in response to a spike in gasoline prices. The rate for charitable purposes is
set by law and is unchanged from 2008.
The business mileage
rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half.
The medical and moving rate was 19 cents in the first half and 27 cents in the
second half.
The mileage rates for 2009 reflect generally
higher transportation costs compared to a year ago, but the rates also factor
in the recent reversal of rising gasoline prices. While gasoline is a significant
factor in the mileage rate, other fixed and variable costs, such as depreciation,
enter the calculation.
The standard mileage rate for business
is based on an annual study of the fixed and variable costs of operating an automobile.
The rate for medical and moving purposes is based on the variable costs as determined
by the same study. Independent contractor Runzheimer International conducted the
study.
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) or after claiming a Section 179 deduction for that
vehicle. In addition, the business standard mileage rate cannot be used for any
vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers
always have the option of calculating the actual costs of using their vehicle
rather than using the standard mileage rates.
NBA
Strategic Partner - The Taxpayer
Advocate Service
NBA
Resource Article - 2008 Standard
Mileage Rates
NBA
Resource Article - IRS Announces
2007 Standard Mileage Rates
Reprint
of this article does not constitute an endorsement by the National Business Association;
the article is for informational purposes for our members and viewers of our Web
site.
