Standard Mileage Rate Increases for 2007
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FacebookNot surprisingly, the IRS is increasing the standard mileage rate that is used in determining the cost of vehicle use in a business in 2007. Effective January 1st, the rate for calculating the cost of use for personal cars, vans, pickup trucks, and panel trucks is increasing from the 2006 rate of 44.5 cents per mile to 48.5 cents per mile. The increase is mainly intended to help compensate for higher gas prices. Moreover, the mileage rate for moving or medical purposes is increasing from the 2006 rate of 18 cents per mile to 20 cents per mail. The deductible rate for vehicles driven in service of a charity (yes, you can deduct this) will remain unchanged at 14 cents/mile.
Published on November 20th, 2006 - 3 Comments
Filed under: Taxes
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About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
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Good news! I do a fair amount of traveling for work and the reimbursement is always a nice bonus. Having a somewhat fuel efficient vehicle, actual fuel costs are just about 8 cents per mile. A good 40 cents a mile just to drive my own car is not too bad. Obviously this is to cover wear and tear on the vehicle as well, but by using a car that doesn’t suck down gas, it actually pays for more than the fair share of costs.
Comment by Jeremy — Nov 20th 2006 @ 11:30 amThis year will be the first time that I’ll be able to make this deduction; unfortunately, I didn’t find out about it until a couple of months ago so I will only have a few trips that I’ll know my mileage for.
Next year I will be keeping better track of such things.
Comment by Blaine Moore — Nov 20th 2006 @ 1:32 pmI am shocked at the 48.5 but I suppose it is pretty accurate.
Comment by More Merchant — Nov 20th 2006 @ 6:13 pm