I.R.S. raises mileage rate - WALB.com, Albany News, Weather, Sports

I.R.S. raises mileage rate

November 19, 2004

Albany -- Next year you will be able to deduct three more cents per mile for business mileage in your personal car. This is the largest one year rate hike for business mileage ever by the Internal Revenue Service.

 Starting in 2005, deductible rates will rise to 40 and one half cents per mile for business. Currently it is 37 and a half cents.

 Also medical or moving expense mileage rates will rise from 13 to 14 cents. Services for charitable organizations will rise to 14 cents.

Revenue Agent Teresa Crow said "The cost of vehicles and the cost of fuel has gone up tremendously in the last year or so, so we went in an adjusted the standard rate accordingly."

The IRS sets mileage rates based on an annual study of the cost of operating a car.

posted at 4:16 PM by jimw@walb.com