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14 Mar 2008 02:11:36 | Howard Young
Effective January 1, 2006, the Internal Revenue Service will
increase the standard mileage rates to 44.5 cents per business
mile driven. The rate increase is about 10% higher than the 2005
rate of 40.5 cents per mile and reflects higher gasoline
costs.
In September, the IRS adjusted the 2005 rate upward by 8 cents
for the last four months of 2005. This increase was due to a
surge in oil and gasoline prices from production losses in the
Gulf Coast area.
The IRS also increased the deductible rates for medical or
moving purposes from 15 to 18 cents per mile; however,
deductible rates for charitable organizations remain at 14 cents
per mile.
When you use your automobile for business, the mileage incurred
is legitimate business expense The new rates will help offset
the cost of higher gas prices.
See also: internal revenue service | gasoline prices | standard mileage rates
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Howard Young is a freelance writer and site administrator for
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