If you use your vehicle for work, medical purposes or moving, be aware of changes to the amount you can deduct for your mileage in 2009. You have the option of deducting the actual expenses, or you can use the standard optional mileage rate posted by the Internal Revenue Service.
In one of our blog post from last August, the IRS had increased the business mileage from 50.5 cents to 58.5 cents in the second half of 2008. The new rate starting in January 2009 will be 55 cents a mile. The 2009 rate for moving or medical costs will also decrease from 27 cents a mile down to 24 cents a mile. In 2008, the IRS unconventionally increased the rates for the second half of the year due to the surge in gasoline prices. The 2009 mileage rates “reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices,” according to an IRS spokesperson. If you are using your vehicle for charity work, the rate will remain at 14 cents per mile.
For more complete details, please visit this page on the IRS Website: 2009 Standard Mileage rates.
If you need more information on how this effects you personally, or to learn about other possible tax deductions you can claim, please feel free to email me or give us a call to schedule an appointment.
