IRS Announces Standard Mileage Rate for 2009
Posted 12-01-2008 at 08:14 PM by kristinecpa
Tags standard mileage rate, taxes
In the second half of 2008, the IRS increased the standard mileage rate to 58.5 cents per mile from 50.5 cents per mile for people who use their personal car for business use. This was in response to skyrocketing gas prices earlier in the year.
Since then, gas prices have dropped dramatically. Prices were as high as $4.10 in some states during the summertime, but have dropped to a national average of $1.90 in this last week in November.
I was wondering how the IRS would respond to the drop in prices. After all the increase to 58.5 cents per gallon was based on prices that were twice as high as they are now.
Earlier this week, the IRS announced that the standard mileage rate for business use of your automobile in 2009 will be 55 cents per mile. That’s still well above the beginning rate in 2008, so I think the new rate is very generous.
For home and online business owners who use their car for business purposes, the automobile deduction can really add up. Make sure you keep a log of all of your business related trips, including the date, the total miles driven and the purpose of the trip.
You can find travel or mileage logs in any office supply store, or you can use your calendar or a spreadsheet to keep track of your miles. The most important thing is to keep good and accurate records in case you are ever audited.
If you keep track of your mileage for medical or charity purposes, not that the standard mileage rate for medical purposes is 24 cents per mile, and the rate for charitable purposes is 14 cents per mile.
For more information on the new mileage rates, please visit ‘IRS Announced 2009 Standard Mileage Rates’.
Since then, gas prices have dropped dramatically. Prices were as high as $4.10 in some states during the summertime, but have dropped to a national average of $1.90 in this last week in November.
I was wondering how the IRS would respond to the drop in prices. After all the increase to 58.5 cents per gallon was based on prices that were twice as high as they are now.
Earlier this week, the IRS announced that the standard mileage rate for business use of your automobile in 2009 will be 55 cents per mile. That’s still well above the beginning rate in 2008, so I think the new rate is very generous.
For home and online business owners who use their car for business purposes, the automobile deduction can really add up. Make sure you keep a log of all of your business related trips, including the date, the total miles driven and the purpose of the trip.
You can find travel or mileage logs in any office supply store, or you can use your calendar or a spreadsheet to keep track of your miles. The most important thing is to keep good and accurate records in case you are ever audited.
If you keep track of your mileage for medical or charity purposes, not that the standard mileage rate for medical purposes is 24 cents per mile, and the rate for charitable purposes is 14 cents per mile.
For more information on the new mileage rates, please visit ‘IRS Announced 2009 Standard Mileage Rates’.
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