If you track your mileage for taxes this will interest you.
The U.S. Internal Revenue Service just announced the mileage rates for 2008, which go into effect New Year’s Day.
You can deduct 50.5 cents for each mile used for business; 19 cents per mile for medical or moving purposes; and 14 cents per mile driven in service of charitable organizations.
The IRS upped the business rate by 2 cents, lowered the medical/moving rate by a penny and kept the charitable rate the same from 2007. The business and medical/moving rates changed based on a study by Runzheimer International. The charitable rate is set by law, according to the IRS.
“The increase in the 2008 national per-mile rate reflects a combination of factors, including higher fuel prices, rising insurance costs, and higher depreciation costs,” notes Ted Schuerman, Director of Research and Client Service within Government Services at Runzheimer International. “Remaining cost components, such as maintenance and registration costs, remained relatively stable,” states the vehicle cost expert.
If you own your own business and have multiple vehicles for that business you may want to check the IRS Web site or ask your accountant. You can only count mileage for a maximum of four vehicles. Accountants can also advise on which method of depreciation should be used for those vehicles.
Nov. 28, 2007