Mortgage Rate Update, Etc.

If you drive a car, truck or van for work, you'll want to make sure you know the standard mileage rates that the Internal Revenue Service (IRS) has set for 2009.

These mileage rates are used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes. As of January 1, 2009, the standard mileage rates for 2009 are as follows:

· Businesses = 55 cents per mile driven
· Medical or moving = 24 cents per mile driven
· Charitable organizations = 14 cents per mile driven

But before you calculate your deduction, make sure you qualify. The IRS reminds taxpayers that they cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Remember, you don't have to use the standard rate! Although the IRS provides the standard mileage rate for ease and convenience, you're not required to use it. If you choose, you have the option of calculating the actual costs of using your vehicle instead of using the standard mileage rates.