| IRS Announces 2009 Standard Mileage Rates | ||
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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:
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.
Note: The state of Iowa does not require absentee ballot requests to be witnessed or notarized.
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