IRS Announces 2008 Standard Mileage Rates
Rate for Business Miles Set at 50.5 Cents per Mile
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. Revenue Procedure
2007-70 contains additional information on these standard mileage rates.