IRS Announces 2009 Standard Mileage Rates

The IRS has announced the 2009 standard mileage rates to be used for business mileage. The rates are:

• 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

Notice that these amounts are down from the current (last half of 2008) rates, because the price of gas has declined. The rates changed from the first half of 2008 to the second half of 2008, again due to the price of gasoline. According to the IRS:

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.

When you are doing your car/truck deduction calculations for your taxes for 2008, you will need to calculate each half of the year separately, then combine them for the total travel expense line on your tax form.