The IRS is about to announce the Standard Mileage Rates for your automotive deductions for the year 2009. I am sure most of you are aware that there was an increase in the rate this past summer, effective July 1, due to the rising costs in our gasoline purchases.
So, in most cases there was one set of mileage rates in effect for the first part of this year, and a different rate for the latter half of this year.
Below is a listing of the rates in effect for January through June 2008, July through December 2008, and new rates for 2009.
BUSINESS: 2008 -- Jan-Jun: 50.5 cents per mile, 2008 -- Jul-Dec: 58.5 cents per mile, and for the year 2009 -- 55 cents per mile.
CHARITY: 2008 -- 14 cents per mile, 2009 -- 14 cents per mile.
MEDICAL: 2008 -- Jan-Jun: 19 cents per mile, 2008 -- Jul-Dec: 22 cents per mile, and for the year 2009 -- 24 cents per mile.
MOVING: 2008 -- Jan-Jun: 22 cents per mile, 2008 -- Jul-Dec: 27 cents per mile, and for the year 2009 -- 24 cents per mile.
As you have noticed, in each one of the categories, the IRS picked a mileage deduction rate for 2009 that was between the high-rate and the low-rate for the year 2008.
When they were asked for the rationale, the response was, "the new rates factor in the recent reversal of rising gasoline prices." That might be a logical conclusion for now, while gasoline prices are well under $2.00 per gallon, but is there anybody who can really be confident they will stay there?
Oh well, we still have the option of claiming a percentage of our actual operating costs, especially if we have a business or even better a Home-Based Business.
For more TAX TIPS, you may go to my website and click on the Tax Advantage tab. My website is: www.unlimitedwealthbuilder.ws