| The Internal Revenue Service has announced the optional standard mileage rates to use for 2002 in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.
The amounts for the various deductible costs for use of a car will be effective Jan. 1, 2002, and are as follows:
• The standard mileage rate for the cost of operating a car is 36.5 cents a mile for all business miles driven. The rate for 2001 was 34.5 cents a mile.
• The standard mileage rate for the use of a car when giving services to a charitable organization remains at 14 cents a mile.
• The standard mileage rate for use of your car for medical reasons is 13 cents a mile. The previous rate was 12 cents a mile.
• The standard mileage rate to use when computing deductible moving expenses is 13 cents a mile. The previous amount was 12 cents a mile.
The primary reason for the mileage rate increases is the rise in gasoline prices during the past year. |
