posted
If you use your PERSONAL vehicle during working hours, this applies to you. Employers who *only* pay you "gas money" just are not cutting it. This is designed to cover wear and tear, maintenance, depreciation and fuel costs.
WASHINGTON — The Internal Revenue Service today issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
50.5 cents per mile for business miles driven; 19 cents per mile driven for medical or moving purposes; and 14 cents per mile driven in service of charitable organizations.
The new rate for business miles compares to a rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes compares to 20 cents in 2007. The rate for miles driven in service of charitable organizations has remained the same.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.
The mileage rate for charitable miles is set by law.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously.
Revenue Procedure 2007-70 contains additional information on these standard mileage rates.
posted
Thanks NBB, this is information I definitely need to know!
-------------------- Some people are like slinkies....they are not really good for anything...but they still bring a smile to your face when you push them down a flight of stairs. Posts: 764 | Registered: Aug 2005
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posted
If you subscribe to the 4nannytaxes.com blog (http://www.4nannytaxes.com/blog) you will get these kinds of updates real time. I am pretty sure we posted this a month or so ago. We generally only have a half dozen posts per month, so you will not get overwhelmed with info.
To my customer. I may not have the answer, but I’ll find it. I may not have the time, but I’ll make it. Posts: 3010 | Registered: Feb 2000
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To my customer. I may not have the answer, but I’ll find it. I may not have the time, but I’ll make it. Posts: 3010 | Registered: Feb 2000
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posted
I wish I'd joined this site sooner! I was charging .33 a mile and felt guilty thinking that THAT was too much!
Posts: 2 | Registered: Mar 2010
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