GRAND RAPIDS ? If there?s a positive side to higher gas prices, it?s an increase in the mileage tax write-off on New Year?s Day by the Internal Revenue Service.
The IRS will increase the standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes to 44.5 cents per business mile drive, starting Jan. 1. The new rate for business miles compares to a rate of 40.5 cents per mile for the first eight months of 2005.
In September, the IRS made a special one-time adjustment of the last four months of 2005, raising the rate for business miles to 48.5 cents per mile in response to a sharp increase in gas prices, which topped $3 a gallon.
The IRS also will allow 18 cents per mile driven for medical or moving purposes; and 14 cents per mile driven in service of charitable organizations, other than activities related to Hurricane Katrina relief.
For the first eight months of 2005, the standard rate for miles driven for medical or moving purposes was 15 cents per mile, and, except for special Hurricane Katrina rates, the standard rate for miles driven in service of a charitable organization was 14 cents per mile.
For the last four months of 2005, the agency raised the standard rate for miles driven for medical or moving purposes to 22 cents per mile. The standard rate for charitable miles remained at 14 cents per mile – except for charitable miles relating to Hurricane Katrina.
Congress this year also approved special rates in connection with miles driven in service of charities providing Hurricane Katrina relief.
