1.  What are standard mileage rates?

2.  What are the current standard mileage rates?

3.  Are there times in filing a return that I should not use the standard rate?

4.  Where can I get additional information?

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1.  What are standard mileage rates?

The Internal Revenue Service determines a standard mileage rate each year.  This is the cost per mile that can be used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.  Many companies also use this standard rate for reimbursements to employees for using their own vehicles when conducting company business.

The standard mileage rates for business, medical and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile. Runzheimer International, an independent contractor, conducted the study used by the IRS to set the 2007 rates.  The mileage rate for charitable miles is set by statute.

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2.  What are the current standard mileage rates?

For 2008 -

Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) is:

• 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 to a charitable organization.

However, in recognition of increasing gasoline prices, the IRS announced an increase in the optional standard mileage rates for the second half of 2008. The standard mileage rate for miles driven from July 1, 2008, through December 31, 2008 is:

• 58.5 cents per mile for business miles driven;

• 27 cents per mile driven for medical or moving purposes; and

• 14 cents per mile driven in service to a charitable organization.

For 2009 -

Beginning Jan. 1, 2009, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) is:

• 55 cents per mile for business miles driven;

• 24 cents per mile driven for medical or moving purposes; and

• 14 cents per mile driven in service to a charitable organization.

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3.  Are there times in filing a return that I should not use the standard rate?

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 2006-49 contains additional information on these standard mileage rates.

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4.  Where can I get additional information?