Innovative Strategies For Winning Tax Controversies, Business Structuring And Estate Planning

New Mileage Rates for 2005

by | Nov 20, 2004 | Uncategorized

New Mileage Rates for 2005

WASHINGTON — The Internal Revenue Service today released the optionalstandard mileage rates to use for 2005 in computing the deductible costs ofoperating an automobile for business, charitable, medical or moving expensepurposes.Beginning Jan. 1, 2005, the standard mileage rates for the use of a car(including vans, pickups or panel trucks) will be:• 40.5 cents a mile for all business miles driven, up from 37.5 centsa mile in 2004;• 15 cents a mile when computing deductible medical or movingexpenses, up from 14 cents a mile in 2004; and• 14 cents a mile when giving services to a charitable organization.The three-cent increase in the business mileage rate was the largest one-year rise ever. The primary reasons were higher prices for vehicles andfuel during the year ending in September. The charitable standard mileagerate is set by law.