Released: June 24, 2008

IRS raises auto mileage deductions

Source: Associated Press, (LA Times) (Free Registration)

The Internal Revenue Service, citing the drain that high gasoline prices are having on people’s finances, said Monday that it was raising the automobile mileage rate that businesses and others can claim as tax deductions.

The agency said the optional standard rate to calculate deductible operating costs for business vehicles would rise to 58.5 cents a mile from 50.5 cents for the final six months of 2008.

That rate also applies to businesses and others entitled to depreciation allowances that operate automobiles for charitable, medical or moving purposes.

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