IRS Increases Mileage Rates through Dec. 31, 2008

In case you have not yet heard the good news (if it can be called that), today the IRS announced an increase of 8¢ in the optional standard mileage rate for the remainder of 2008. As you may recall this is normally adjusted annually and announced in the fall for the following tax year. Guess they are taking pity on us due to the gas prices painfully being felt all across the country.

In summary, starting July 1, the following rates will apply:

• Business Mileage 58.5¢ per mile
• Medical Mileage 27¢ per mile
• Moving Expense Mileage 27¢ per mile

Unfortunately, an increase in the standard mileage rate for charitable mileage was not increased as it is set by statute and not by the IRS. It remains at 14¢ per mile.

If you want more details, or are having difficulty falling asleep, the full text related to optional mileage rates can be found in Rev. Proc. 2007-70. Here is the link.

http://www.irs.gov/pub/irs-drop/rp-07-70.pdf

Suffice to say, the above increase is appreciated!