2008 Mileage Rate Increases

IRS Increases Mileage Rates
Due to rising gas prices, the mileage rate will increase by eight cents to 58.5 cents a mile for all business miles driven from July 1 through Dec. 31, 2008. The new rate for computing deductible medical or moving expenses will also increase by eight cents to 27 cents a mile. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile. See news release IR-2008-82 and Announcement 2008-63.

This means that everyone WHO USES THEIR VEHICLE FOR BUSINESS PURPOSES and takes the standard mileage rate will have to know both their business and total mileage up through June 30, 2008 and then the balance for the rest of the year.