The Internal Revenue Service is recognizing the increasing costs of transportation and has revised the rate that taxpayers can use for deducting business-related travel expenses. For miles driven between July 1 and December 31, 2008, the new rate is 58.5 cents per mile, up 8 cents from the rate used for the first half of this year.
I would expect businesses that reimburse their employees for miles driven will follow suit.
This method for deducting travel expenses from travel is only one option. If you like, you could track all of your travel expenses, including gasoline and tolls, but it’s much simpler to keep track of the miles you drive and use the rate determined by the IRS.
IRS Increases Mileage Rates through Dec. 31, 2008, Internal Revenue Service, June 23, 2008.
Published or updated June 24, 2008. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
Rank: Platinum
{ 4 comments… read them below or add one }
private employers don’t have to re-imburse at the federal amount, it is just a guideline, is that correct?
i have always been a little confused about that…
I think only the government is REQUIRED to reimburse at their posted rate, correct? (and self employed can use this rate to deduct their business miles for tax purposes)
Matty: You’re right — private employers aren’t required to follow the IRS mileage rate but many large employers do.
If I own my own small business, can I deduct miles from my taxes at this rate as well?
Thats nice, but at the rate costs are going up private business can’t keep up. My wife’s workplace couldn’t offer her a comparable package because they were locked into a rate with the county.