Get set for the new 2008 mileage rates

The IRS has announced new standard mileage rates for 2008.

* 50.5 cents a mile for business use.

* 19 cents a mile for medical or moving expenses.

* 14 cents a mile for charitable use.

BUSINESS USE. You can generally claim the standard mileage rate when using your vehicle for business travel (other than commuting to work). Most people find it easier to use the standard rate than to keep track of specific costs for gasoline, service, and repairs. The deduction rules for business use of a vehicle can be complicated, so you may want to get details if you travel for business.

MEDICAL, MOVING, AND CHARITABLE USES. You can also claim mileage as part of your itemized deductions for medical or charitable expenses. (Examples: using your car to travel to a doctor's appointment or driving your car in your charitable work).

Even if you don't itemize, you may still be able to deduct mileage costs as part of your moving expenses. Not all moves qualify for the deduction, though, so check to see if your move meets the deduction requirements.

RECORDKEEPING. You must keep supporting records if you claim any of these deductions. Generally, you should record the date, beginning and ending odometer readings, itinerary, and purpose for each use. The easiest way to keep good records is to buy an inexpensive mileage log at your local office supply store. Get in the habit of completing the log after each trip you make.

For assistance with this or any of your tax concerns, give us a call.