The IRS has issued new standard mileage rates for 2008.  The standard mileage rate for business miles is increased from 48.5 cents per mile to 50.5 cents per mile.  The business standard mileage rate is used instead of trying to keep track of all the actual fixed and variable costs (i.e. depreciation or lease payments, maintenance and repairs, tires, gasoline, oil, insurance, and license and registration fees) of the vehicle that are allocable to business purposes. 

The standard mileage rate for medical and moving expenses is decreased from 20 cents per mile in 2007 to 19 cents per mile for 2008.  Business, medical, and moving standard mileage rates are all determined by an annual study of the fixed and variable costs of operating an automobile, which is conducted on behalf of the Internal Revenue Service by an independent contractor. 

The standard mileage rate for charitable contribution deduction purposes remains at 14 cents per mile.  The charitable contribution standard mileage rate is stated in 26 U.S.C. § 170(i).  Therefore, it can only be changed by legislative enactment.

Parking fees and tolls attributable to use of a vehicle for charitable, medical, or moving expense purposes may also be deducted as separate items.