IRS Kicks Up Business Mileage Rate For 2008

I hate to do this, but I'll be that guy. It's time to start thinking about tax season, but fear not you deducting beasts, the IRS's 2008 standard mileage rates have been announced and all of those miles you spend on the road for work this year will be getting a significant bump to 50.5 cents per mile. This means that those 300 miles you had to drive for work is now worth $151.50 in deductions. Don't get too excited, cubicle warriors, this only includes driving done for business purposes, like with delivery drivers, salesmen and others. Your daily, 15 mile commute to the cubicle farm is not included, unfortunately.

The IRS also dropped the standard mileage rate for medical or moving purposes to 19 cents per mile, down from 20 cents per miles for 2007, and left the mileage rate the same at 14 cents per mile for charity work. The IRS bumped up the mileage rates after studying the fixed and variable costs of operating an automobile.

The business mileage rate has seen a significant increase over the past six years. In 2002 the rate was 36.5 cents per miles and has steadily grown until 2008, when it will surpass the half-dollar mark. Hooray deductions! [IRS via KT]
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