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IRS Announces 2007 Standard Mileage Rates
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IR-2006-168, Nov. 1, 2006
WASHINGTON — The Internal Revenue Service today issued the 2007
optional standard mileage rates used to calculate the deductible
costs of operating an automobile for business, charitable,
medical or moving purposes.
Beginning Jan. 1, 2007, the standard mileage rates for the use
of a car (including vans, pickups or panel trucks) will be:
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48.5 cents per mile for business miles driven;
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20 cents per mile driven for medical or moving purposes;
and
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14 cents per mile driven in service to a charitable
organization.
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The new rate for business miles compares to a rate of 44.5
cents per mile for 2006. The new rate for medical and moving
purposes compares to 18 cents in 2006. The primary reasons for
the higher rates were higher prices for vehicles and fuel during
the year ending in October.
The standard mileage rates for business, medical and moving
purposes are based on an annual study of the fixed and variable
costs of operating an automobile. Runzheimer International, an
independent contractor, conducted the study for the IRS.
The mileage rate for charitable miles is set by statute.
A taxpayer may not use the business standard mileage rate for
a vehicle after using any depreciation method under the Modified
Accelerated Cost Recovery System (MACRS), after claiming a
Section 179 deduction for that vehicle, for any vehicle used for
hire or for more than four vehicles used simultaneously.
Revenue Procedure 2006-49 contains additional information on
these standard mileage rates. |
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For More Information Contact:
Williams & Green Bookkeeping & Tax Service, Inc.
1229 Meridian St, Huntsville, AL 35801
Tel: 256-533-4930
FAX: 256-533-9860
Internet:
acwilliams@williamsandgreen.com
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