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.
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