VEHICLE MILEAGE DEDUCTION
RATES HAVE BEEN SET FOR 2009

The IRS announced the Standard Mileage
Rates for vehicle deductions for 2009. As you know,
the standard mileage rate was increased this summer, effective July 1,
due to rapidly rising gas prices.

So, in most cases there was one set of rates in effect
for the first half of this year, and a different set of rates
for the second half.

Here is a listing of rates in effect for Jan-June 2008,
July-Dec 2008, and new rates for 2009.

Business:
2008 -- Jan-Jun: 50.5¢/mile
2008 -- Jul-Dec: 58.5¢/mile
2009 -- 55¢/mile

Charity:
2008 -- 14¢/mile
2009 -- 14¢/mile

Medical:
2008 -- Jan-Jun: 19¢/mile
2008 -- Jul-Dec: 22¢/mile
2009 -- 24¢/mile

Moving:
2008 -- Jan-Jun: 22¢/mile
2008 -- Jul-Dec: 27¢/mile
2009 -- 24¢/mile

As you see, in each category, they picked a
rate for 2009 that was between the high-rate
and the low-rate for 2008.

When asked for the rationale, the IRS response was,
"the new rates factor in the recent reversal of
rising gasoline prices."
That might be logical for now, while prices are
well-under $2.00/gal., but is anybody really
confident they will stay there?

Oh well, we still have the option of claiming a percentage
of our actual operating costs instead of using the standard mileage rates.

It might be a good idea to track those actual expenses in 2009.

Wishing you many happy returns,

Dr. Wayne T. Essex