Mileage Deduction Increase for 2008

If you drive for a living you know how expensive it can be. Besides the obvious rising cost of gas there are other expenses to worry about like maintenance, tolls, parking and insurance. You might feel just a little less strain from these expenses next year because the IRS is raising the mileage deduction rate from 48.4 cents per mile to 50.4. Two cents isn’t a lot but every little bit helps.

Of course it wouldn’t be the IRS if there weren’t a list of exceptions and qualifications. In this case, the deduction doesn’t apply if you’ve used any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously.

For more information check out IRS.gov.