Monday, March 12, 2007

Purpose Funding

Sorry for the title, but I listen to Roggin and Simers Squared too much. (I heard one in which Tracy was screaming "PURPOSE FUNDING!" at semi-random moments.)

But I didn't know that IRS reimbursable mileage rates depend upon the purpose for which you are driving.

The Internal Revenue Service today issued the 2007 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning Jan. 1, 2007, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

48.5 cents per mile for business miles driven;
20 cents per mile driven for medical or moving purposes; and
14 cents per mile driven in service to a charitable organization....

The standard mileage rates for business, medical and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile. Runzheimer International, an independent contractor, conducted the study for the IRS.

The mileage rate for charitable miles is set by statute.

Now I know why charity mileage reimbursement rates are so terrible. I thought they were just saving money.


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