High Gas Prices Have The IRS Increasing Mileage Rates
March 25, 2009 by Marcie · Leave a Comment
WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
“Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile,” said IRS Commissioner Doug Shulman. “We want the reimbursement rate to be fair to taxpayers.”
While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
The new rates are contained in Announcement 2008-63 on the optional standard mileage rates.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Mileage Rate Changes
Purpose
Rates 1/1 through 6/30/08
Rates 7/1 through 12/31/08
Business
50.5
58.5
Medical/Moving
19
27
Charitable
14
14
http://www.irs.gov/taxtopics/tc510.html
Free Gas Rebates for Vacation Travelers
March 5, 2009 by Marcie · Leave a Comment
This summer vacationers will find help with fuel costs. Read more
Why drive drunk, when you can get a free ride home?
February 14, 2009 by Marcie · Leave a Comment
February 14, 2009 by Marcie · Leave a Comment
AAA has a terrific program called AAA’s tipsy tow program offered on nine different holidays and special events. They offer a free five-mile tow home for drinking drivers and their vehicles.
The tipsy tow program is open to everyone. You do not need to be a AAA member to take advantage of this service to the community. Read more
How to Save Money on Airport Car Parking
June 16, 2008 by Marcie · Leave a Comment
It’s not the big screen TV that makes life expensive, it’s all of the daily expenses that slowly bleed people dry. Case in point, parking at the airport. It’s an expense that most people don’t figure into their vacation or business travel. But it can certainly add up to a King’s ransom after just a few days. Here are some tips on how to save money on airport car parking.
Do the math on how much it will cost ahead of time. With many cities and towns offering public transportation and private companies that specialize in ride-share popping up all the time, it may make the most sense not to park at the airport at all. Determine the average daily cost of the parking lots and then multiply it by the amount of time you’ll be gone. If that cost is greater than the price to take other transportation, then skip parking at the airport altogether.
Rely on the kindness of friends and family to drive you to the airport. Everyone has that one friend who is always asking for a ride to the airport. The truth is people usually begrudgingly say “yes.” They may talk about what a pain you are behind your back, but they’ll do it. If they do drive you, just make sure to give them gas money or offer to return the favor next time they are going out of town.
Look for coupons for parking lots. These tend to come in the mail in little booklets or fliers. You can also find them online as many of the parking lots at the airport have official websites. These also allow you to make online reservations, which saves time and gives you the peace of mind of knowing you’ll have a spot. This is especially helpful during holiday time.
Ask about a weekly rate. When you pull into the parking lot, see if you can save money by getting a special rate for staying 7 days or more. Many parking lots offer this as an incentive. You can save up to 25 percent.
Become a frequent parker at one specific place. Just like there are discount memberships for other factions of your life, airport parking places are now offering memberships for frequent travelers. It usually costs nothing to join. The more you park, the more you save.
Park far away from the airport. This trick is helpful for the person who doesn’t mind the extra 10 minutes on both sides of their trip. Airport parking is like real estate. It’s all about location, location, location. The closer you are to the airport, the more you’ll pay. Drive a few extra blocks and save some money.
Tips & Warnings
Carpool to the airport with other members from your office. If you don’t get reimbursed for the parking expense, it’s a great way to split the cost.
