Monday, August 4, 2008
The IRS doesn't care that it stinks! Organizations operating vehicles for business get a token small break, but no one else gets any relief. Deductions for medical and moving purposes, along with charitable organizations, went down or stayed the same. As of Jan. 1, 2008 the IRS standard mileage rates (including vans, pick ups or panel trucks) have increased for business. The new rates are in response to ever increasing gas operating costs for these organizations. Business mileage increased from 48.5 cents to 50.5 cents per mile driven, a 2 cent increase from 2007. Conversely, medical and moving rates fell from 20 cents per mile to 19 cents per mile. Charitable organizations (governed by law, not the IRS) had no change in their deduction. Tax payers deducting for mileage are not eligible for depreciation deductions. With these changes, the bottom line is the IRS has not helped business owners in America lower their bottom line.