With the recent spike in fuel costs, the IRS has increased their standard mileage rate for the last four months of the year. The new rate as of September 1 will be 48.5¢, up from the 40.5¢ rate set for January 1.The standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
But the really big news? Charitable mileage can still only be deducted at 14¢ per mile. What's up with that? The rate hasn't increased for years. If any one can point me to the charitable gas station where I can fuel up that cheaply, please drop me an email.
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