IRS Issue Number: IR-2008-131 November
24, 2008
IRS Announces 2009
Standard Automobile Mileage Deduction
WASHINGTON — The Internal
Revenue Service on November 24, 2008, issued the 2009 optional
standard mileage rates used to calculate the deductible costs of operating
an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a
car (also vans, pickups, or panel trucks) will be:
- 55 cents per mile for business miles driven
- 24 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of
charitable organizations
The new rates for business, medical and moving purposes are slightly
lower than rates for the second half of 2008 that were raised by a special
adjustment mid-year in response to a spike in
gasoline prices. The
rate for charitable purposes is set by law and is unchanged from 2008.
The business mileage rate was 50.5 cents in the first half of 2008 and
58.5 cents in the second half. The medical and moving rate was 19 cents in
the first half and 27 cents in the second half.
The mileage rates for 2009 reflect generally higher transportation costs
compared to a year ago, but the rates also factor in the recent reversal of
rising gasoline prices. While gasoline is a significant factor in the
mileage rate, other fixed and
variable costs, such as depreciation, enter the calculation.
The
standard mileage rate for business is based on an annual study of the
fixed and variable costs of operating an automobile. The rate for medical
and moving purposes is based on the variable costs as determined by the same
study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle
after using any
depreciation method under the Modified Accelerated Cost Recovery
System (MACRS) or after claiming a Section 179 deduction for that vehicle.
In addition, the business standard mileage rate cannot be used for any
vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using
their vehicle rather than using the standard mileage rates.
Revenue Procedure 2008-72
contains additional information on these standard mileage rates.
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