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IRS Increasing Mileage Rate in 2005

The IRS has announced an increase in the standard mileage rate applicable for business use of a vehicle for the last four months of 2005. The rate will now be 48.5 cents, increased from 40.5 cents. (The announcement was made on September 9, 2005.)

At the same time, the IRS has announced an increase in the standard mileage rate applicable for vehicle use related to moving or medical treatment for the last four months of 2005. The rate will now be 22 cents, increased from 15 cents. (The announcement was made on September 9, 2005.)

While this is a welcome relief given the cost of gasoline, it also means that we will all need to be sure that the date is kept in our mileage records.

You can read the complete release in IR-2005-99.

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Any views expressed herein are based on our best information. The content of this web site was written as general information without specific individual information and thus may not apply in all situations. This material was not written, and cannot be used by the taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.

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Janelle Ogg, EA
Richard Ogg, EA