The IRS has updated the standard mileage allowance rate effective July 1, 2008 (see IRS Website) to 58.5 cents per mile to help offset the rising cost of gasoline. The rate for the first six months of 2008 was 50.5 cents per mile. Although this rate sounds high, keep in mind that you still may be passing up a deduction if you don’t try to optimize with actual expenses as well. Don’t miss out on deserved deductions. For full details, check out our prior post, “Are you making the ‘Mileage Allowance’ mistake?”
Charitable mileage rates remain steady at 14 cents per mile (per statue), but moving and medical mileage will increase from 18 to 27 cents per mile.
Donna Bordeaux is a Certified Public Accountant and Personal Financial Specialist with Bordeaux & Bordeaux, CPAs, PA in Lake Wylie, SC (a suburb of Charlotte, NC). For further information about Donna or her firm, please visit www.charlottecpafirm.com.