IRS Increases Per-Mile Driving Rate to 58.5 Cents: Rate Effective for Final Six Months of 2008
June 24, 2008
Announced yesterday, the Internal Revenue Service (IRS) will increase the national per-mile business driving rate to 58.5 cents-per-mile for the final six months of 2008. The rate increase will be effective July 1, 2008 through December 31, 2008. The tax agency plans to review vehicle costs and reevaluate the rate for 2009.
This is an increase of 8 cents from the currently established rate of 50.5 cents-per-mile. The cents-per-mile standard is the amount the U.S. taxpayer can deduct for vehicle expenses on his or her 2008 tax return for business miles driven.
The decision to increase the national per-mile business driving rate reflects recent fuel price increases. Although not involved in the rate increase announced yesterday, Runzheimer International will work closely with the IRS to establish the rate for the time period beginning January 1, 2009. Runzheimer International has provided this annual service to the IRS since 1980.
The IRS also announced a new six-month rate for computing deductible medical or moving expenses of 27 cents-per-mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations remains at 14 cents-per-mile.
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About Runzheimer International
Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500 and numerous government agencies. Recognized for providing innovative solutions relating to total employee mobility, Runzheimer is the global leader in workforce mobility programs including business vehicle, business travel, corporate aircraft, employee relocation and compensation, and virtual office.
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For more information, contact Julia Baldus at Runzheimer International, Runzheimer Park, Rochester, Wisconsin 53167, (262)971-2442, jpb@runzheimer.com, www.runzheimer.com.
