Ebiz Tax Tips - Tax Tips for eBay Sellers, Online Business and Other Small Business Owners » deduct business miles http://internetbiztaxtips.com Tax Tips for eBay Sellers, Online Business and Other Small Business Owners Sat, 12 Dec 2009 21:12:57 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 IRS Increases Mileage Rates For the Remainder of 2008 http://internetbiztaxtips.com/2008/07/irs-increases-mileage-rates/ http://internetbiztaxtips.com/2008/07/irs-increases-mileage-rates/#comments Thu, 03 Jul 2008 03:48:58 +0000 Kristine http://internetbiztaxtips.com/?p=123 In recognition of recent gasoline price increases, the IRS has raised the standard mileage rate for the final six months of 2008.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through December 31, 2008. The rate for the first half of 2008 is 50.5 cents.

The IRS normally updates the mileage rates once a year, but given the significant increases in gas prices this year, the IRS has made a special rate increase in the middle of the year.

Taxpayers may use the standard mileage rates to calculate the deductible costs of using their personal automobile for business, charitable, medical or moving purposes.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Whichever method you choose, it is important to keep track of your mileage to substantiate your deduction. Because the rates were increased in the middle of the year, it’s also important to keep track of the dates you use your vehicle for business to make sure the proper rate is used.

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