The Internal Revenue Service (IRS) has increased the standard business-mileage deduction to 50.5 cents for all business miles driven beginning January 1, 2008. This is a $0.2 cents-a-mile increase over the 2007 rate and reflects higher prices for fuel during 2007. The calculation also includes all other aspects of buying and operating a vehicle such as depreciation, insurance, tires, etc.
Businesses and individuals who use their car for business have the option of using the standard rate in lieu of keeping records of their actual expenses. The 2008 standard rate of 50.5 cents per mile applies to the use of automobiles (including vans, pickups and panel trucks) for business purposes.
For further details, contact Stuart Gosswein at stuartg@sema.org.