Posted by PAW on 11/27/07 3:22pm
Msg #223149
IRS Announces 2008 Standard Mileage Rates
IRS Announces 2008 Standard Mileage Rates; Rate for Business Miles Set at 50.5 Cents per Mile
WASHINGTON — The Internal Revenue Service today issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
50.5 cents per mile for business miles driven;
19 cents per mile driven for medical or moving purposes; and
14 cents per mile driven in service of charitable organizations.
The new rate for business miles compares to a rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes compares to 20 cents in 2007. The rate for miles driven in service of charitable organizations has remained the same.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.
The mileage rate for charitable miles is set by law.
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 (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously. Revenue Procedure 2007-70 contains additional information on these standard mileage rates.
Related link: http://www.irs.gov/pub/irs-drop/rp-07-70.pdf
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Reply by Susan Fischer on 11/28/07 12:02am
Msg #223295
Mileage for charitable work, down. Med/Moving, down.
"When President Bush took office on January 20, 2001, the national average gas price was $1.46 per gallon. Six and a half years later, on August 27, 2007, the national average gas price had jumped to $2.76, roughly 89% higher. Compounded annually, this represents about a 10% jump each year Bush has been in office.
Now, let’s compare the numbers over the same time period for President Clinton.
When Clinton took office on January 20, 1993, the national average gas price was $1.06 per gallon. six and a half years later, the national average gas price had jumped to $1.22, roughly 15% higher. Compounded annually, this represents about a 2% jump each year.
Even when you compare all of Clinton’s term (38% jump overall) against the first six and a half years of Bush’s term, the overall jump in gas prices between the two presidents isn’t even close. In order to meet Clinton’s “numbers” gas prices would have to fall to $2.02 per gallon - or roughly 36%.
I’m not saying that this proves President Bush helped manipulate or allowed the manipulation of gas prices, but at the same time, these numbers are pretty staggering." http://www.dailyfueleconomytip.com/?p=401
It's approaching $3.50 here. Diesel's outrageous, it's higher.
*Lowering* charitable miles, and undervaluing actual gas prices, the IRS is not presenting a very 'conservative compassion' to the lower and middle class. Good thing the rich and wealthy have tax cuts, to stimulate our delicate coastal economy.
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