IRS changes vehicle milage rates in 2009

In a recent article on SmartStart Practice, we published the tax rate changes affecting veterinarians in 2008 vs. 2007. Recently the IRS changed the vehicle mileage rates again. During the second half of 2008 mileage rates were increased to 58.5 cents per mile in response to increased fuel costs. This rate will be downgraded to 55 cents per mile for 2009. When tracking your mileage expenses for 2008, you should be using 50.5 for the first 6 months, 58.5 for the last 6 months of 2008 and then 55 for 2009.

Additionally you should be aware that as of January 1, 2009 the following apply:
55 cents per mile for business miles driven
24 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

As always, we recommend you check www.irs.gov for the most current recommendations.