IRS boosts mileage deductible

[napi21]

Acknowledging the impact of higher gas prices on businesses and individuals, the Internal Revenue Service this week said it will raise its automobile mileage-deduction rate for the second half of 2008.

The agency will boost the optional standard rate, used to compute deductible operating costs for vehicles, to 58.5 cents a mile beginning in July, up from 50.5 cents, the rate used since January.

The IRS normally updates the mileage rates once a year in the fall but it has come under pressure to adjust rates sooner.

Regular gasoline prices nationwide on Tuesday averaged $4.07 a gallon according to information from AAA.

It only helps a little, but at least it's a step in the right direction!

[bunkerbuster1]

1. That's a pretty big jump.

Seems like not that long ago the IRS would bump the allowable per mile deduction by a penny each year, which would be around 2% or so.

This is nearly a 16% jump. Wow.

[MiniMe]

2. Do you have a link? I want to pass it on.

Thanks

[napi21]

3. Here's the link I have.

http://www.bizjournals.com/atlanta/stories/2008/06/23/daily34.html?f=et50&ana=e_du

It's the Atlanta Business Journal.

[MiniMe]

4. Thanks!