| As most small businesses are aware, a tax deduction | | | | IRS, there is a downside. The 48.5 cent figure only |
| can be taken for mileage incurred in normal business | | | | applies for mileage undertaken from September 1, |
| travel. In light of high gas prices, the IRS has upped the | | | | 2005 through December 2005. |
| mileage rate. | | | | The less well known medical and moving mileage rate |
| Major Increase | | | | is also being upped. Previously set at 15 cents a mile, |
| Nothing is worse than sitting at the pump and watching | | | | the IRS is increasing the rate to 22 cents a mile. Again, |
| the dollar figures tick over. In fact, I paid over $3.30 a | | | | the increased rate is only applicable for the last four |
| gallon this morning in San Diego. What a way to start | | | | months of 2005. |
| the week! Fortunately, the IRS is granting some relief. | | | | Comment |
| In 2004, the IRS set the standard mileage deduction | | | | I don't want to sound greedy, but I seem to remember |
| rate at 40.5 cents per mile for 2005. Obviously, gas | | | | gas prices being outrageously high prior to September |
| prices were just a bit lower in 2004. Apparently, | | | | 2005. Others have apparently expressed the same |
| employees at the IRS have noticed this and action is | | | | thought to the IRS. The response of the Agency is it |
| being taken. | | | | expects gas prices to drop significantly over the next |
| The IRS has announced the standard mileage rate is | | | | few months, which should make everything a wash. |
| being increased from 40.5 cents to 48.5 cents. While | | | | Undoubtedly, this is news to the oil companies! |
| this is the single largest increase ever issued by the | | | | |