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Every year, the Internal Revenue Service adjusts the standard mileage rate for automobile use for business purposes or charitable activities, or for moving or medical expenses.
The IRS raised the mileage rates for the second half of 2008 because of the rapid run-up of gasoline prices in the first half of the year. The national average price of gasoline peaked at $4.114 on July 17, 2008, according to AAA's Daily Fuel Gauge Report.
For mileage driven from Jan. 1, 2008, to June 30, 2008, the standard mileage rates are:
- 50.5 cents a mile for business use.
- 19 cents a mile for medical or moving expenses.
- 14 cents a mile for driving in charitable activities.
For mileage driven from July 1, 2008, to Dec. 31, 2008, the standard mileage rates are:
- 58.5 cents a mile for business use.
- 27 cents a mile for medical or moving expenses.
- 14 cents a mile for driving in charitable activities.
For mileage driven in 2009, the standard mileage rates are:
- 55 cents a mile for business use.
- 24 cents a mile for medical or moving expenses.
- 14 cents a mile for driving in charitable activities.
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, one of the nation's largest travel-management consulting firms, conducts the study for the IRS.
For more information on car expenses and use of the standard mileage rate, check chapter 4 of Publication 463: Travel, Entertainment, Gift and Car Expenses (.pdf file).
Updated Dec. 12, 2008
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