John M. Hoffman & Associates CPAs

Frequently Asked Questions

Important Tax Numbers ($'s)

• Standard Mileage Rates

Tax Year	2007	2008 *
Business	48.5¢	50.5¢ - 58.5¢
Charitable	14¢	14¢
Moving	20¢	19¢ - 27¢
Medical	20¢	19¢ - 27¢

 

* For 2008 the IRS has increased the rates for the 2nd six months of the year as noted above to reflect the high price of gasoline.

The standard mileage rate is an alternative to claiming actual expenses. It is much easier as less effort in tracking expenses is involved. For some taxpayers the effort of tracking all the expenses (gas, repairs, insurance, etc.) is worth the effort. The standard mileage rate is intended to include all these expenses including depreciation of your vehicle. You must still keep a record of your mileage, a log book by date and time is the best way.

The standard mileage rate does not include tolls or parking and those should be claimed separately.