IRS Announces Mileage Reimbursement Rate for 2006
The IRS has issued the new "official" mileage reimbursement rate for 2006. While there was an out of cycle adjustment for this year up to 48.5 cents, alas next year the rate will only be 44.5 cents/mile. A few other rates of note:
- deductible medical or moving expenses will be 18 cents a mile next year.
- a special rate, 32 cents a mile, has been established for deductions related to Hurricane Katrina charitable service. Organizations can reimburse volunteers working on Hurricane Katrina charity efforts at the business rate of 44.5 cents.
I think that lowering the milege rate sucks with the cost of gas rising why shouldnt the IRS screw us over and lower the rate it isnt that much money to begin with and now it is even less thanks for nothing
I think the IRS should lower the mileage rate to equate with the 40 miles per gallon a hybrid would get. And there are hybrids today --modified Prius--that get 100 miles per gallon. Plus, it wouldn't hurt to start changing the tax law to make today's tax payer responsible for covering the costs of the government it voted for!