New mileage rates

[Jesse]

IRS Announces 2008 Standard Mileage Rates;
Rate for Business Miles Set at 50.5 Cents per Mile

WASHINGTON — The Internal Revenue Service today issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

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

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 of charitable organizations.

The new rate for business miles compares to a rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes compares to 20 cents in 2007. The rate for miles driven in service of charitable organizations has remained the same.

Why would medical dercrease by 1 penny?

[Jiggers]

Medical mileage didn't decrease

IRS Announces 2008 Standard Mileage Rates;


Why would medical dercrease by 1 penny?

Medical went from 18¢ to 19¢.

[Bees Knees]

Medical miles were 18¢ in 2006, 20¢ in 2007, and now back down to 19¢ for 2008.

[Jiggers]

Sorry, looking at 2006 TaxBook

Medical miles were 18¢ in 2006, 20¢ in 2007, and now back down to 19¢ for 2008.

Dumb me, picked up the TaxBook I am using, for 2006 taxes.

I always think one year behind because that is how we do tax return.

Thanks for correcting me, Bees Knees.

[Lion]

Reason for Decrease...

From the IRS posting:

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.

[Bees Knees]

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.

So does that mean they determined the cost of driving to the doctor or a new house went down, but the cost of driving to a client's house went up?

[joanmcq]

the variable costs should include the price of gas, which in my case went up, not down. fixed cost is the price of the car.