Standard Mileage Rate Increases for 2007
Not 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
email this article
- add to tip'd - stumble it - digg it - bookmark it
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!
Related articles...
» From the Archives (November 18th – November 24th)» Ethanol Blended Gas = Lower Mileage?
» How to Decide if Travelling to a Sales Tax Holiday is Worthwhile
» Save Money on Gas by Tracking Your Mileage
» Accuracy of EPA Gas Mileage Estimates
» Real-World Gas Mileage for a Honda CR-V
» HSBC Direct Drops Interest Rate
» Best High Mileage Cars
Was this article useful? Please sign up to receive our content via e-mail:
Great deals...
Readers’ choice...
Recent articles...
- Did Congress Make the Homebuyer Tax Credit Retroactive?
- Congress Extends $8000 Homebuyer Tax Credit, Adds New $6500 Credit
- Lending Club Update - October 2009 Performance
- How Much to Budget for Car Maintenance?
- Series I Savings Bonds Now Paying 3.36%
- Use Weight Loss Strategies to Get Out of Debt
- Weekly Roundup - Disney Shanghai Edition
- How to Save Money on Vacations
- Most and Least Reliable Cars - 2009 Edition
- Get 100 Free Trades from OptionsHouse Brokerage
Recent comments...
- Penny: I am about to purchase a new home.. which will be my new residence...
- APRIL DAYS: I FOR ONE HOPE THAT THE FIRST TIME HOMEOWNERS TAX CREDIT IS EXTENDED BECAUSE...
- JB: I drive a 1999 car and save $60 a month for car repairs, oil...
- Greta: My significant other and I bought a house in February 2009. My boyfriend...
- Jay: Don't forget nCleaner 2nd for turning off widows firewall and windows defender...also use the...
- Bryan: @Doug - you said it... if you simply delayed the closing, it would have...
- Sympathetic Dish TSR: @ Bonnie: Is your HD tv a Flatscreen LCD style? If so then a...
- John DeFlumeri Jr: Thanks for explaining the tax credit. Too bad for those who purchase in...
Most talked about...
- Dave Ramsey is Bad at Math
- $8,000 Homebuyer Tax Credit
- Dish Network Customer Service SUCKS
- How to Claim the First-Time Homebuyer Tax Credit
- $15,000 Homebuyer Tax Credit
- Reduced Credit Limits? Share Your Experience
- Would the "Fair Tax" Gut the Economy?
- Tax Stimulus Rebate Payments to Start Early
- Pay Off Mortgage Early? Or Invest?
- The Best Online Savings Accounts (Updated!)
- Life's Too Short to Drink Cheap Beer
- $7500 First Time Homebuyer Tax Credit
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