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Article added or updated:
03/30/2008 |
IRS Announces 2007 Standard Mileage Rates
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IR-2006-168, Nov. 1, 2006
WASHINGTON — The Internal Revenue Service today issued the 2007
optional standard mileage rates used to calculate the deductible
costs of operating an automobile for business, charitable,
medical or moving purposes. |
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Beginning Jan. 1, 2007, the standard
mileage rates for the use of a car (including vans, pickups or panel
trucks) will be:
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48.5 cents per mile for business miles driven;
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20 cents per mile driven for medical or moving
purposes; and
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14 cents per mile driven in service to a
charitable organization.
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The new rate for business miles compares to a rate of
44.5 cents per mile for 2006. The new rate for medical and moving
purposes compares to 18 cents in 2006. The primary reasons for the
higher rates were higher prices for vehicles and fuel during the year
ending in October.
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| The standard
mileage rates for business, medical and moving purposes are based on an
annual study of the fixed and variable costs of operating an automobile.
Runzheimer International, an independent contractor, conducted the study
for the IRS.
The mileage rate for charitable miles is set by
statute.
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), after claiming a
Section 179 deduction for that vehicle, for any vehicle used for hire or
for more than four vehicles used simultaneously. Revenue Procedure
2006-49 contains additional information on these standard mileage rates.
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