Monday, June 30, 2008

US IRS Announced An Increased Mileage Rate Effective July 1, 2008 (IR-2008-82, June 23, 2008)

The US IRS (Internal Revenue Service) announced on June 22, 2008 an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The above announcement is in support to taxpayers on the increased fuel costs, automobile costs for business and other purposes, including moving. Beginning July 1, 2008 through December 31, 2008, the new rates will be 58.5 cents per mile for business use, up from 50.5 cents, and 27 cents per mile for moving expenses, up from 19 cents.

This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70 The IRS usually adjusts the mileage rates once per year, but opted to do so this mid-year because the costs of fuel have increased dramatically in recent months.

To read in details please click on the link IRS Memo dated June 22nd 2008.

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