»»IRS To Lower Car Mileage Rate for Business to 55 Cents per Mile
Beginning January 1, 2009, the standard mileage rate used to calculate the deductible costs of operating an automobile for business will be 55 cents per mile.
That means 3.5 cents less than the current rate.
The Internal Revenue Service adjusted it mid-year amid escalating fuel prices. As a consequence, the standard mileage rate for business travel was 50.5 cents per mile for the first half of 2008 and 58.5 cents for the second half.
Most businesses use standard mileage rates to calculate deductible costs for employees who use personal vehicle for business.
Effective January 1, 2009, the standard mileage rates for the use of a car, vans, pickups or panel trucks as announced by IRS will be:
- 55 cents per mile driven for business
- 24 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations.
