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IRS
Raises Mileage Rate for 2008
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[December 03, 2007]
DOWNERS GROVE -- The Management
Association of Illinois is reporting a 2-cent increase in the
standard business mileage rate for 2008. The IRS has announced that
the standard business mileage rate, used to compute the reimbursable
cost of operating a passenger car for business purposes paid or
incurred beginning Jan. 1, 2008, will be 50.5 cents per mile, up
from the 48.5 cents per mile rate effective in 2007. The rate was
44.5 cents per mile in 2006.
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 This rate can also be used to compute the deductible cost of
operating a passenger car for business purposes if a company uses
four or fewer vehicles. For larger companies ineligible to take the
deduction, the IRS standard mileage figure is widely used as a
benchmark in setting reimbursement rates for employees' driving
expenses."The standard mileage rate is based on the fixed and
variable costs of operating an automobile for business purposes,"
said Nancy Mathis, an IRS spokeswoman. "The items that go into
calculating the costs include maintenance, repairs, insurance,
registration fees and, of course, one of the biggest variables is
the price of gasoline." Mathis added that taxpayers can opt to use
the standard mileage rate deduction, or they can keep track of their
expenses.
Gasoline prices currently exceed $3 per gallon on average
nationally, compared with about $2.22 a gallon on average a year
ago.
Beginning Jan. 1, 2008, the standard mileage rates for the use of
a car (including vans, pickups or panel trucks) will be:
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50.5 cents per mile
for business miles driven.
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19 cents per mile
driven for medical or moving purposes.
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14 cents per mile
driven in service of charitable organizations.
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The standard mileage rates for business, medical and moving purposes
are based on an annual study by Runzheimer International, an
independent contractor for the IRS, on the fixed and variable costs
of operating an automobile.
The mileage rate for charitable miles is set by congressional
statute.
The Management Association of Illinois is a not-for-profit
organization dedicated to providing personnel management solutions
to more than 900 member organizations.
In addition to its Human Resources Hotline, annual wage and
salary surveys, and various publications on compliance and best
human resources practices, the association provides professional
services in compensation administration, affirmative action planning
and employment-related legal matters. The association also provides
training for human resources personnel as well as training in
leadership and supervisory skills.
[Text from file received from
the
Management Association of
Illinois]
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