Do you drive your car for your employer? If so, you should know that on November 27, 2007, the IRS announced an increase in the optional standard mileage rates used to calculate 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.
Previously, the rate for business miles was 48.5 cents per mile. Employers often use the IRS rates when reimbursing their employees for driving-related expenses.
IRS Revenue Procedure 2007-70 contains additional information on these standard mileage rates.
Thanks to Callaborlaw.com for breaking the story.