2007 Standard Mileage Rates
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.
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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