Standard mileage rates.

• Author: Laffie, Lesli S.
• Position: FROM THE IRS

Rev. Proc. 2005-78 sets forth the 2006 optional standard mileage rates that may be used by employees, self-employed individuals and other taxpayers when computing the deductible costs of operating an automobile (including cars, vans, pickups or panel trucks) for business, medical, moving or charitable purposes.

Business mileage: For 2006, the standard rate for business mileage is 44.5 cents per mile.

Medical and moving mileage: The standard mileage rate for medical or moving expenses has been increased to 18 cents per mile.

Charitable mileage: The mileage rate for charitable purposes, other than activities related to Hurricane Katrina relief, remains at 14 cents cents per mile.

Hurricane Katrina mileage: For 2006, the rate for miles driven for charities providing Hurricane Katrina relief be 32 cents per mile for deduction purposes and 44.5 cents per mile for reimbursement purposes.

Deemed depredation: When the 2006 business standard mileage rate of 44.5 cents is used, depreciation will be considered to have been allowed at a rate of 17 cents per...