With gas prices on the rise, it’s no surprise that the mileage rates as determined by IRS were a little higher this year than in years past.
For the calendar year 2007, the standard mileage rates will be:
- 48.5 cents per mile for business miles driven;
- 20 cents per mile driven for medical or moving purposes; and
- 14 cents per mile driven in service to a charitable organization.
Taxpayers may opt to use the standard mileage rates for business use or the actual cost of operating the car; the election, once made must be used for the entire life of the vehicle. Depending on the age and maintenance requirements of your car, the actual cost of operating the care for business could be greater than the standard mileage rates.
The standard mileage rate for charitable use is fixed by statute and there is no “actual cost of operating” option.