IRS Announces 2006 Standard Mileage Rates

The IRS issued the 2006 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning Jan. 1, 2006, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

• 44.5 cents per mile for business miles driven;

• 18 cents per mile driven for medical or moving purposes; and

• 14 cents per mile driven in service of charitable organizations, other than activities related to Hurricane Katrina relief.

Special Rates for Katrina-Related Charitable Miles

For 2006, these Katrina-related charitable rates will be 32 cents per mile for deduction purposes and 44.5 cents per mile for reimbursement purposes.  For more information, visit the IRS website at www.irs.gov.