Standard Mileage Rates Increase
By Howard Young, Tue Dec 27th

Effective January 1, 2006, the Internal Revenue Service will increase the standard mileage rates to 44.5 cents per business mile driven. The rate increase is about 10% higher than the 2005 rate of 40.5 cents per mile and reflects higher gasoline costs.

In September, the IRS adjusted the 2005 rate upward by 8 cents for the last four months of 2005. This increase was due to a surge in oil and gasoline prices from production losses in the Gulf Coast area.

The IRS also increased the deductible rates for medical or moving purposes from 15 to 18 cents per mile; however, deductible rates for charitable organizations remain at 14 cents per mile.

When you use your automobile for business, the mileage incurredis legitimate business expense. The new rates will help offset the cost of higher gas prices.

See also: internal revenue service | gasoline prices | standard mileage rates

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About the author: Howard Young is a freelance writer and site administrator forQT Auto News.