Article: IRS Raises Mileage Rate to Reflect Gas Prices

The Internal Revenue Service, citing the drain that high gas prices are having on people's finances, said yesterday that it is raising the automobile mileage rate that businesses and others can claim.

The agency said the optional standard rate to calculate deductible operating costs for business vehicles will rise from 50.5 cents to 58.5 cents a mile for the final six months of 2008.

That rate also applies to businesses and others entitled to depreciation allowances that operate automobiles for charitable, medical or moving purposes.

"Rising gas prices are having a major impact on individual Americans," IRS Commissioner Doug Shulman said. "Given the increase in prices, the IRS is adjusting ...

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