IRS Increases 2008 Standard Mileage Rates

The IRS announced Monday that it has increased the standard mileage rate for the final six months of 2008 in recognition of rising gas prices.

The rate will increase to 58.5 cents per mile for all business miles driven from July 1, 2008 through Dec. 31, 2008. This is an eight cent increase from the 50.5 cent rate that is in effect for the first six months of 2008.

Taxpayers can use the optional rates to calculate the deductible costs of operating a vehicle for business, charitable, medical or moving purposes.

The IRS usually updates the mileage rate once a year in the fall for the next calendar year.

"Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile," said IRS Commissioner Doug Shulman. "We want the reimbursement rate to be fair to taxpayers."

By Sharon McLoone |  June 24, 2008; 10:16 AM ET Tax Tips
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Comments

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I am confused, The govt will pay more gas fees and help encourage more use of gas,but only for the business people?Any loss in the swapout on taxes will come out of anyone that can not deduct their gas,say average working Americans who can't deduct a dime to and from work.Sounds like Obama's let them eat cake energy policy,but it is a Rep administration.All this is marketed in your mag as a help out?To who who pays?Dems or Rep,all us working peasants are getting rooked by the real political parties controlled by the wealthy,who know best for the unwashed nimrod.Next thing we know our nobility will be telling us we will have all electric cars,but powered by what,no coal-no nukes,how many trillion kilowatts will have to be produced by what?

Posted by: anabasis | June 24, 2008 1:33 PM

thank god the fed has finally caught up with the current gas reality

Posted by: god | June 25, 2008 12:23 AM

I work for the NCDOT and do alot of traveling. I welcome the increase. However, I don't think the increase is no where near enough to compensate the rate gas prices have risen. Any increase is better than none, I guess.

Posted by: Dave | June 25, 2008 8:14 AM

Increases in rates is one thing. I welcome the rate increase, helps me out in the long run as an individual. The problem is though, we are a world still driven by Gas. We need to get away from gas and start moving toward alternatives sources of energy. The rates and prices of gas are just going to keep going up as time progresses. We aren't producing any more oil then we have been in the past 5 years. Oil production is the same, demand is higher, so prices are higher. Its going to get to the point where you see more people stealing gas or robbing people at gas stations for freaking gas. It just drives me crazy when I see someone driving a expedition or hummer, with there so called "Dubs" on them. Pumping a ghastly 100 dollars or more of gas which will probably last them a mere few days. If you open your eyes up and see how things are going around you, wouldn't you think that it would dawn on you that "WOW, I'm already paying 500 dollars a month or more for this TANK, let alone putting several hundred dollars a week in gas," Maybe I should have got the hybrid hummer? Its just the way America is, we don't think about alot of the things that are going on around us. We see a nice SUV on TV buy it then 2 years later you're still paying for it and kicking yourself in the butt for doing it. Since now your blowing ungodly amounts of money trying to keep this thing on the road. Everyone just needs to step back and think about things and maybe we might be able to break out of our "Need for Oil." Maybe we can Evolve?

My 2 scents

Posted by: Rich | June 25, 2008 5:01 PM

There is an interesting business tool provided by this web site http://www.MileageLogger.com that will capture that business mileage automatically, no need for pen and paper.

Posted by: taxguru | June 25, 2008 7:32 PM

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