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Get Better (Tax-Deductible) Mileage


Will the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws.  be increasing mileage MILEAGE. A compensation allowed by law to officers, for their trouble and expenses in travelling on public business.
     2. The mileage allowed to members of congress, is eight dollars for every twenty miles of estimated distance, by the most usual roads, from his
 rates because of high gas prices?

Yes, indeed. The IRS usually adjusts mileage rates only once a year, but high gas prices prompted the government to raise the tax-deductible mileage rates in the middle of 2008.

Starting on July 1, when you use your car for business, you'll be able to write off 58.5 cents for each mile you drive, which is an 8-cent increase from the first half of the year. Many private companies use the same rates as the IRS and are likely to raise their reimbursement Reimbursement

Payment made to someone for out-of-pocket expenses has incurred.
 rates for travel expenses, too.

The rate for each mile driven for medical and moving purposes will also increase by eight cents, up to 27 cents a mile starting on July 1.

The rate for each mile driven to help a charitable organization This article is about charitable organizations. For other uses of the word charity, see Charity.
A charitable organization (also known as a charity) is an organization with charitable purposes only.
, however, will remain at 14 cents. That rate is set by statute rather than by the IRS.

For more information about each type of mileage deduction, see the following IRS Tax Topics: Business Use of Car, Medical and Dental Expenses and Charitable Contributions charitable contribution n. in taxation, a contribution to an organization which is officially created for charitable, religious, educational, scientific, artistic, literary, or other good works. . Also see the Kiplinger Tax Center.
Copyright 2008 Kiplinger.com
No portion of this article can be reproduced without the express written permission from the copyright holder.
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Author:Kimberly Lankford, Contributing Editor, Kiplinger's Personal Finance
Publication:Kiplinger.com
Date:Jun 25, 2008
Words:187
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