Yep! In fact back in the middle of 2008 the IRS in its infinite wisdom threw a monkey wrench into the neat system, designed to make figuring the Standard Vehicle Tax Deduction simple, by bumping the per mile rate up a bit for 3 of the 4 categories. For those of you who had to figure that out, Congress has generously chosen to simplify next year's SMR by reducing some of those tax deduction rates and fixing them for the entirety of 2009.
Aren't you glad Congress cares so much?
The chart below illustrates the "Standard Mileage Rate" (SMR) for both halves of 2008 alongside the new 2009 rates the IRS will be announcing soon.
| SMR Category | Jan. - Jun. '08 per ml. | Jul. - Dec. '08 per ml. | 2009 per ml. |
|---|---|---|---|
| Business | 50.5¢ | 58.5¢ | 55¢ |
| Charity | 14¢ | 14¢ | 14¢ |
| Medical | 19¢ | 22¢ | 24¢ |
| Moving | 22¢ | 27¢ | 24¢ |
Interesting how the medical category went up. Maybe that's part of a new "health care" package. I love it when Congress shows decides to help.
When asked why Congress reduced the business and moving categories they said, "The new rates factor in the recent reversal of rising gas prices". Oh, I get it … we don't really need that much tax relief after all.
In light of this new trend in Congressional "tax incentives", tax payers like yourself may want to consider the alternative "Actual Operating Cost" option. You may want to keep track of your percentage of actual business related automobile use in 2009 … just incase next year is not as rosy as Congress seems to think it will be.
The information in my new FREE Report, "How Anyone Can Increase Tax Deductions By Thousands"> will help you learn to maximize your home business taxes Big Time. If you need start-up funding for a new business, especially if you think you can’t afford one, then you need the information in this free report.
I appreciate you,
Bill Tessore
Get the right tools for success
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