SEMA eNews Vol. 11, No. 26, June 26, 2008

IRS INCREASES MILEAGE-RATE DEDUCTION TO REFLECT HIGH GAS PRICES

Soaring gas prices caused the Internal Revenue Service (IRS) to raise the standard business-mileage deduction by 8 cents to 58.5 cents for all business miles driven between July 1 and December 31, 2008. 

It is unusual for the IRS to make a mid-year adjustment. The mileage calculation also includes all other aspects of buying and operating a vehicle such as depreciation, insurance, and tires. 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 adjusted 2008 standard rate of 58.5 cents per mile applies to the use of automobiles (including vans, pickups and panel trucks) for business purposes. 

For details, contact Stuart Gosswein: stuartg@sema.org.

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