Effective July 1st 2008 - IRS Increases Business Mileage Rates Deductions

For those of you that might not of heard the IRS has announced some Good news! Due to the recent increase for gasoline, for the remaining 6 months starting July 1, 2008 to the end of this year the IRS has made a special adjustment to increase business mileage deductions from 50.5 cents to 58.5.  This is an increase of eight cents per mile!

The IRS normally updates the mileage rates once a year in the fall for the next calendar year. The IRS Commissioner Doug Shuman notes that rising gas prices are having a major impact on individual Americans.  And to be fair to taxpayers they are increasinging the reimbursement rate to the real cost of operating an automobile.

The IRS also increased milaeage expenses for medical or moving from .19 cents per mile to .27 cents.  This is great information to pass on for any of your clients who are planning a move.

Make sure to keep a business record for all your business miles driven.  This will help with your 2008 cost of doing business right offs.