Rising fuel costs are part of a change at the nation's tax agency. Acknowledging the impact of record prices on businesses and individuals, the Internal Revenue Service is moving to raise the automobile mileage-deduction rate for the final six months of 2008. The increase goes into effect July 1st.
The new increased rate of 58.5 cents a mile for all business miles driven will be in effect from July 1, 2008, through Dec. 31, 2008. This is an increase of eight cents from the 50.5 cent rate in effect for the first six months of 2008. The IRS normally sets mileage rates once a year in the fall, but record fuel prices prompted the new mid-summer increase.
The IRS is working to help entrepreneurs get the most out of the economic stimulus package passed earlier this year. Among the provisions of the stimulus bill is a 50 percent bonus depreciation allowance on equipment purchased and placed into service this year: You can find tax tips especially for the self-employed and small business owners on SBTV.com. Look for the IRS logo under "Small Business Organizations" on the SBTV.com home page or click here.