Quickbooks, Bookkeeping and Accounting Blog

The 2008 standard mileage rate, which is used to calculate the deductible cost per mile of driving an automobile for business purposes, is the highest it has ever been. The standard rates, which went into effect on January 1, 2008, are as follows:

• business miles driven: 50.5 cents per mile
• miles driven for medical and moving purposes: 19 cents per mile
• miles driven in service of charitable organizations: 14 cents per mile

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.