| Accounting & Tax Solutions, Inc. is a full service tax, accounting, and business consulting firm located in Lakewood, CO and serving Arvada, Lakewood, Wheatridge, Golden, Littleton, Morrison, Denver, Highlands Ranch, Englewood, Centennial, Aurora, Greenwood Village, Westminster, Thornton, Northglenn, Broomfield, Commerce City, and Brighton. See our Services pages for detailed information, call 303.232.8300 or click to Schedule an Appointment. |
 return to Tax Tips
|
Tax Tip: (November 2008)
IRS Announces 2009 Standard Mileage Rates
IR-2008-131, Nov. 24, 2008
WASHINGTON - The Internal Revenue Service today issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 55 cents per mile for business miles driven
- 24 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than rates for the second half of 2008 that were raised by a special adjustment mid-year in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2008.
The business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The medical and moving rate was 19 cents in the first half and 27 cents in the second half.
The mileage rates for 2009 reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices. While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
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) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2008-72 contains additional information on these standard mileage rates.
Let Accounting & Tax Solutions, Inc. help you navigate through the many regulations and nuances of the tax laws, to ensure that you receive the expert advice of a licensed tax practitioner: Contact Form
|
return to Tax Tips
|
|
Tax Forms
The latest tax forms at your fingertips. 
Tax tips and seasonal advisories. Appointment Let us know when you would like to schedule an appointment.
Set up a consultation with an EA, CPA, or Accountant to discuss your tax and financial planning, accounting, or bookeeping needs.
|
Copyright ©
Accounting & Tax Solutions, Inc.
office: 303.232.8300 address: 710 Kipling Street, Suite 205, Lakewood, CO 80215
website design by POITRA Visual