IRS announces 2007 standard mileage rates

The Internal Revenue Service (IRS) has announced the 2007 optional standard mileage rates for calculating deductible costs.

Effective Jan. 1, the standard mileage rate for the use of a car, van, pickup truck or panel truck is 48.5 cents per mile driven for business purposes, an increase of 4 cents per mile from the 2006 rate. The standard mileage rate is 20 cents per mile driven for medical or moving purposes and 14 cents per mile driven in service to a charitable organization.

Higher prices for vehicles and fuel are cited as the primary reasons for the mileage rate increase.