In an unprecedented move……
IR-2008-82, June 23, 2008
WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
Here is an interesting take on this event from the Seeking Alpha investment web site about what this says about inflation:
But its more than a bunch of whiny consumers, vicious, lying short sellers, pajamed bloggers — and PIMCO’s Bill Gross — that have recognized the absurdity of our inflation rate. Even the IRS has finally thrown in the towel….
…..As the table below shows, deduction of gasoline expenses was 44.5 cents in 2006; this deduction increases to 58.5 cents by year’s end. As measured by the IRS, we have a 32% rise in energy costs over two years.
Does this mean the IRS is sympathetic to the business community?
Click Here to see the IRS Announcement in it’s natural habitat
