Friday, December 02, 2005

IRS details 2006 Mileage allowance

IRS Adjusts Mileage Rate to 44.5 Cents
The Internal Revenue Service on Friday set the deductible rate that workers can claim next year for using personal cars on business at 44.5 cents a mile.
That's less than a temporary rate that the tax agency put in place for the last four months of this year, reflecting higher prices at gas pumps nationwide. The temporary rate is 48.5 cents a mile.
Next year's rate is higher than the 40.5 cents a mile in effect for most of this year. Many businesses use the IRS rate as a benchmark for reimbursing employees for travel costs.