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Clergy Tax Facts®


IRS 2008 Standard Mileage Rates

NEW

Due to rising gas prices, the mileage rate will increase by eight cents to 58.5 cents a mile for all ministry/business miles driven from July 1 through Dec. 31, 2008. The new rate for computing deductible medical or moving expenses will also increase by eight cents to 27 cents a mile.

The Internal Revenue Service issued the 2008 standard mileage rates used to calculate the deductible costs of operating an automobile for ministry, business, charitable, medical or moving purposes.

Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

  • 50.5 cents per mile for ministry and business miles driven;
  • 19 cents per mile driven for medical or moving purposes; and
  • 14 cents per mile driven in service of charitable organizations

The IRS commissions an annual study to set the standard mileage rate for business, medical and moving purposes, but the charitable purpose rate is set by law. Taxpayers cannot use the business standard mileage rate after using any depreciated method under the Modified Accelerated Cost Recovery System after claiming a Section 179 deduction for any vehicle used for hire or for more than four vehicles used simultaneously. For more information, see Revenue Procedure 2007-70.

IRS 2007 Standard Mileage Rates

For tax years beginning in 2007, the allowable deductions for the standard mileage rate are as follows:

  • 1. Ministry/Business miles. The standard mileage rate for the cost of operating your car changes to 48.5 cents a mile for all business miles driven.
  • 2. Charitable services. The standard mileage rate allowed for use of your car when you use your car to provide charitable services to a charitable organization is 14 cents a mile.
  • 3. Medical reasons. The standard mileage rate allowed for use of your car for medical reasons is 20 cents a mile.
  • 4. Moving. The standard mileage rate for determining moving expenses is 20 cents a mile.

Mileage Rate History

2008 $.50.5/mile - effective 1/1/08
2008 $.58.5/mile - effective 7/1/08
2007 $.485/mile
2006 $.445/mile - effective 1/1/05
2005 $.485/mile - effective 9/1/05
2005 $.405/mile
2004 $.375/mile
2003 $.360/mile
2002 $.365/mile
2001 $.345/mile
2000 $.325/mile