Higher consumer prices for vehicles and fuel during fiscal year 2006 has led the Internal Revenue Service (IRS) to announce increases in the 2007 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
According to an IRS press release, beginning on Jan. 1, 2007, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 48.5 cents per mile for business miles driven;
- 20 cents per mile driven for medical or moving purposes; and
- 14 cents per mile driven in service to a charitable organization.
The 2007 rate for business miles driven is up from 44.5 cents per mile in 2006, while the rate for medical or moving mileage increased by 2 cents from 18 cents per mile last year. More legal details on the mileage rates are available on the IRS Website.
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