| Knowing what tax IRS gas mileage is all about is | | | | businesses. They can maximize the benefits |
| important to every motor vehicle owner. No | | | | provided by the lower rates by also exploring |
| matter if your vehicles are used for business, for | | | | alternative fuel-run vehicles. Hydrogen fuel cell |
| medical purposes or for charity, you can still save | | | | vehicles and those that have alternative fuel |
| some money by knowing what the Internal | | | | conversion kits can earn owners the most tax |
| Revenue Service rules are for gas mileage. | | | | credits under the reimbursement policy of the |
| On June 2008, the IRS announced an increase in | | | | IRS. Electric hybrid vehicles are also good options, |
| the gas mileage rate for the remaining six months | | | | although owners of these types of vehicles need |
| of the year. This means that vehicle users and | | | | to take note that tax credits for electric hybrid |
| taxpayers may use the optional rates to calculate | | | | cars would depend on the number of vehicles sold |
| the deductible costs of owning and driving a car | | | | by manufacturers. |
| for business, medical and charitable uses. The rate | | | | Businesses that are serious in their intent to earn |
| has been increased to 58.5 cents a mile from the | | | | more gas mileage credits and lower their tax bills |
| old rate of 50.5. According to the IRS, the move | | | | will have a better chance if they purchased hybrid |
| was made in recognition of the financial problems | | | | electric vehicles, hydrogen fuel cell cars and other |
| caused by the continuous increase in gas prices. | | | | vehicles that run on alternative fuels. However, |
| The 58.5 rate covers vehicles used in business, | | | | for those who cannot afford to purchase new |
| while those used for moving or medical purposes | | | | vehicles, they can still earn their benefits by |
| will have a rate of 27 cents per mile, an increase | | | | converting their existing fleet using hydrogen |
| of around eight cents from 19. Vehicles used for | | | | conversion kits. These kits allow vehicles to run |
| and by charitable organizations will remain at 14 | | | | on hydrogen or gasoline. They can help save fuel, |
| cents a mile since the rates for these associations | | | | increase tax credits and allow drivers to |
| are established by statute and not by the | | | | contribute to lowering air pollution. |
| government agency. Vehicle owners can deduct | | | | The new tax IRS gas mileage rates might not |
| their mileage from their annual tax return and | | | | seem a lot on paper, but any method of saving |
| they will then be eligible for mileage | | | | money during times of escalating fuel prices will be |
| reimbursements. Taking these rates into | | | | much welcomed by motorists. However, motor |
| consideration, motor vehicle owners can increase | | | | vehicle owners and drivers should also keep their |
| their tax credits and save more money. | | | | eyes and minds open for other ways by which |
| Tax IRS gas mileage deductions can be applied to | | | | they could add to their tax savings and lower |
| businesses that own four or fewer cars and to | | | | their fuel expenses. |
| individuals who travel by automobiles to their | | | | |