Napier & Company, LCC

The Internal Revenue Service 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.

You may not use the business standard mileage rate if any of the following apply:

• You took 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

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.