Thursday, January 10, 2008

New IRS Mileage Rate for 2008

The new IRS mileage deduction for business use of a personal vehicle went up 2 cents this year, from 48.5 cents a mile to 50.5 cents. So, if an employee's car gets 20 miles to the gallon, and she uses one gallon of gas for business purposes (i.e., goes 20 business miles), it is about $3 in gas that the employee is expending. The employer is reimbursing the employee $10.10, so the employee is also getting fairly compensated for any wear and tear to the vehicle.

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