Standard Mileage Tax Deduction Going Up July 1st

Standard Mileage Tax Deduction going to 58.5 cents beginning July 1.

The standard mileage deduction for those who drive for business will be increased to 58.5 cents per mile, starting July 1, 2008. This move by the IRS is the Federal Government’s attempt to help citizens impacted by higher fuel costs. The current, 50.5 cents per mile deduction applies to business-use miles driven since January 1, 2008.

The new rate will be in effect until the end of the year. The IRS points out the deduction applies only to business use of personal vehicles, not to other uses, such as for charitable purposes. People who drive leased as well as owned vehicles for business are entitled to the SMR (standard mileage rate).

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