MORE FOR THE MILEAGE

Recognizing the pinch of higher gas prices, the IRS announced an increase in the optional standard mileage reimbursement rates for the last six months of 2008. The rate increases to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008 – an increase of eight cents from the 50.5 cent rate in effect for the first six months of 2008. The new six-month rate for computing deductible medical or moving expenses will also increase by eight cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The IRS normally updates the mileage rates once a year – in the fall – for the next calendar year. “Rising gas prices are having a major impact on individual Americans,” says IRS Commissioner Doug Shulman. “Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile. We want the reimbursement rate to be fair to taxpayers.” More information: http://www.irs.gov/newsroom/index.html 

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