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IRS sets mileage

The Internal Revenue Service increasing mileage rates for deductible costs of using an automobile for business

The Internal Revenue Service is increasing the mileage rates for calculating the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The 2007 mileage rates will be: 
- 48.5 cents per mile for business miles driven, up from the 2006 level of 44.5 cents per mile.
- 20 cents per mile driven for medical or moving miles driven, up from 18 cents per mile in 2006.
- 14 cents per mile driven in service to charitable organizations.

The increases in mileage rates for business, moving and medical purposes were attributed to increased fuel and vehicle costs. The rates are based on an annual study of the costs of operating a vehicle. The rate for charitable mileage is set by statute. For more, www.irs.gov.