WASHINGTON — The Internal Revenue Service today announced 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 rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. 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 normally only makes these adjustments once a year. But since gas prices have risen to an obscene level, we're getting a break for the second half of the year. It won't solve the problem, but it will help.
Read the full press release here.
My service truck gets 8 MPG, that works out to about 75 cents per mile.I'm still short end of the stick.
Posted by: Ralph Garcia | June 25, 2008 at 09:20 AM
No doubt 58 cents is a Band-Aid, and a tiny one at that. It's going to take a lot more to stop the bleeding.
Posted by: Mike Buckley | June 25, 2008 at 11:17 AM