The Internal Revenue Service (IRS) has released the optional standard mileage rates to use for 2008 in computing the deductible costs of operating an automobile for business.
Beginning Jan. 1, 2008, the standard mileage rate for the use of a car, including vans, pickup trucks and panel trucks, is 50.5 cents per mile for all business miles driven. The new rate is 2 cents per mile higher than the 2007 rate of 48.5 cents per mile.
The standard mileage rates for business purposes are based on an annual study of the fixed and variable costs of operating an automobile. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction for that vehicle. The business standard mileage rate cannot be used for more than four vehicles used simultaneously.
Click here for more information on the standard mileage rate.