IRS Increases Mileage Reimbursement Rate Again

The IRS has formally recognized that gas prices are going through the roof.

Every year the IRS approves a standard mileage reimbursement rate used to calculate the deductible costs of operating an automobile for business purposes. At the beginning of 2008, the amount increased from 48.5 cents per mile to 50.5 cents per mile.

Now with quickly escalating gas prices the IRS has approved a special mid-year increase of the standard mileage reimbursement rate. Effective July 1, 2008 through the end of 2008, the rate will increase from 50.5 cents per mile to 58.5 cents per mile. This 8 cents per mile increase represents an increase of almost 16%.

To read more about it, go to the IRS website.