High Gas Prices Fuel Bigger Tax Break

WASHINGTON (AP) - The IRS is raising the automobile mileage rate
that businesses and others can claim. The agency says the drain
that high gas prices are having on people's finances are behind the
change.
The IRS says the optional standard rate to calculate deductible
operating costs for business vehicles will go from 50.5 cents a
mile to 58.5 cents for the last six months of this year.
The tax agency says the rate for computing deductible medical or
moving expenses is also changing. It's going from 19 cents to 27
cents a mile for the final six months of the year.
Congress must enact legislation to change the rate for providing
services for charitable organizations, so that will stay at 14
cents a mile.

(Copyright 2008 by The Associated Press. All Rights Reserved.)