IRS Ups Automobile Mileage Writeoff
Posted by Benjamin Dona on Tuesday, June 24th, 2008 at 2:06pm.
On Monday, the IRS announced it is raising the automobile mileage rate that self employed individuals and business owners can claim on their tax returns. The agency said the "standard rate it allows to calculate deductible operating costs for business vehicles will go up to 58.5 cents from the current 50.5 cents and will be available for use for the last six months of 2008."
Citing rising gas prices as having a major impact on individual and business finances, IRS Commissioner Doug Shulman said "given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile." He also said the agency wanted to "get the new guidance out early," so that businesses could prepare for doing mid-year adjustments beginning July 1st. The deductible rate will also rise for computing deductible medical and moving expenses from 19 cents to 27 cents per mile for individuals not entitled to depreciation allowances. As with everything that the IRS announces, you should consult with your accountant or tax advisor for advice as to how the new changes will affect your individual situation.
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