The IRS announced the 2009 standard mileage rates for the use of a car (including a van, pickup, or panel truck) for business purposes. Effective January 1, 2009, the standard mileage rate is 55 cents per mile. This is slightly lower than the standard mileage rate that was in effect for the second half of 2008 (58.5 cents per mile). That rate was raised by the IRS mid-year because of the increases in fuel prices at the time. (Also, the rate for January 1, 2008 through June 30, 2008 was 50.5 cents per mile, and for 2007, it was 48.5 cents per mile.)
Self-employed people can deduct their business miles using the standard mileage rate or by calculating actual costs. To use the standard mileage rate, you must use that method the first year you use the vehicle in your business, and you can’t have claimed accelerated depreciation deductions or have taken any Section 179 deductions for the vehicle.
Injured workers who are receiving workers' compensation benefits from the State of California also use the IRS mileage rate when they request reimbursement for miles driven to and from medical appointments, pharmacies, and the like.
Effective date:
Jan. 01, 2009
This update affects these Nolo products:
