Due to rising gas prices, the mileage rate will increase by eight cents to 58.5 cents a mile for all business miles driven from July 1 through Dec. 31, 2008. The new rate for computing deductible medical or moving expenses will also increase by eight cents to 27 cents a mile. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile. See news release IR-2008-82 and Announcement 2008-63.
Although this is good news, depending on what you drive this may not cover the cost of the business use of your vehicle. The mileage method is commonly used by taxpayer, but with the high cost of gas, calculating your auto expense using the actual method may keep you from wasting money on taxes.
Although this is good news, depending on what you drive this may not cover the cost of the business use of your vehicle. The mileage method is commonly used by taxpayer, but with the high cost of gas, calculating your auto expense using the actual method may keep you from wasting money on taxes.
