Standard Mileage Rates Increase
By Howard Young, Tue Dec 27th

Effective January 1, 2006, the Internal Revenue Service willincrease the standard mileage rates to 44.5 cents per businessmile driven. The rate increase is about 10% higher than the 2005rate of 40.5 cents per mile and reflects higher gasolinecosts.

In September, the IRS adjusted the 2005 rate upward by 8 centsfor the last four months of 2005. This increase was due to asurge in oil and gasoline prices from production losses in theGulf Coast area.

The IRS also increased the deductible rates for medical ormoving purposes from 15 to 18 cents per mile; however,deductible rates for charitable organizations remain at 14 centsper mile.

When you use your automobile for business, the mileage incurredis legitimate business expense The new rates will help

offsetthe cost of higher gas prices.

See also: internal revenue service | gasoline prices | standard mileage rates

Content SEO by keywordTRAX

(c) 2005 by Howard Young

You have permission to publish this article ONLY if it remainsunchanged and you include the copyright, author information, andan active link to the author's Website (Resource Box) at theend.

About the author:Howard Young is a freelance writer and site administrator forQT Auto News.