2009 Standard Mileage Rate

Posted by Dave Dunn on November 25, 2008 | 0 Comments

Tags: Accounting, Bookkeeping, Small Business

The IRS announced the 2009 standard mileage rates today. The rate for business miles driven is down slightly from the second half of 2008, but still considerably higher than the first half of 2008 and prior years. Effective July 1, 2008, the standard mileage rates are as follows:

• Business usage: 55 cents per mile (was 50.5 cents per mile in first half of 2008, 58.5 in second half of 2008)
• Miles driven for medical and moving purposes: 24 cents per mile (was 19 cents per mile in first half of 2008, 27 in second half of 2008)
• Miles driven in service of charitable organizations: 14 cents per mile (this is unchanged).

Taxpayers cannot use the business standard mileage rates in the following situations:

• after using depreciation methods under the Modified Accelerated Cost Recovery System (MACRS)
• after claiming a Section 179 deduction for the automobile used
• for vehicles used for hire or for more than 4 vehicles used at the same time.

Finally, taxpayers can choose to calculate the actual costs of using their vehicles instead of using the standard mileage rates.