|IR-2007-192, Nov. 27, 2007
WASHINGTON — The Internal Revenue
Service today issued the 2008 optional standard mileage rates used to
calculate the deductible costs of operating an automobile for business,
charitable, medical or moving purposes.
Beginning Jan. 1, 2008, the standard mileage rates for the use of a
car (including vans, pickups or panel trucks) will be:
- 50.5 cents per mile for business miles driven;
- 19 cents per mile driven for medical or moving purposes; and
- 14 cents per mile driven in service of charitable organizations.
The new rate for business miles compares to a rate of 48.5 cents per
mile for 2007. The new rate for medical and moving purposes compares to
20 cents in 2007. The rate for miles driven in service of charitable
organizations has remained the same.
The standard mileage rate for business is based on an annual study of
the fixed and variable costs of operating an automobile; the standard
rate for medical and moving purposes is based on the variable costs as
determined by the same study. Runzheimer International, an independent
contractor, conducted the study for the IRS.
The mileage rate for charitable miles is set by law.
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), after claiming a Section 179
deduction for that vehicle, for any vehicle used for hire or for more
than four vehicles used simultaneously.
Procedure 2007-70 contains additional information on these standard