Heads up for 2008, the changes have been announced:
More info on the whys and hows can be found here.Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
- 50.5 cents per mile for business miles driven;
- 19 cents per mile driven for medical or moving purposes; and
- 14 cents per mile driven in service of charitable organizations.
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2 comments:
I very much appreciate the work of CAN, and you, in updating us of changes in taxes, legislature and other financial issues.
You help in very many ways.
I noticed on the Accounting Bootcamp webpage, that you have posted the new mileage rates.
I thought I might point an area of general confusion.
You report (accurately) that the mileage reimbursement is 14cents per mile driven in service of charitable organizations.
This is often confused to mean that volunteers can only be reimbursed at 14 cents per mile by the charitable organization for miles driven in service of the organization.
This is not the case. The 14cents per mile refers to the amount a volunteer can claim as a charitable deduction on their tax return. Allowing that a volunteer is reimbursed at no amount greater than their actual costs (without depreciation of auto and operation expenses), they may be reimbursed at a higher amount. Generally, this is the IRS standard mileage rates or 50.5 cents this year.
This has been a source of confusion at our organization (which is entirely volunteer driven). So, I thought I would pass along the info in the event you receive a question and/or for your information.
Thanks again for all of your help.
Deanna Devescovi
National Fiscal Services Director
National Assistance League.
Hi Deanna,
Thanks for your clarification. Unfortunately, though, it muddied the waters for me. I am treasurer of a charitable non-profit that raises money to support an orphanage in Baja California. We are a young foundation, incorporating in late 2004. As such, we are still feeling our way in a number of areas, especially travel reimbursements. If the IRS allows only $0.14 per mile and the foundation reimburses at a rate higher than that, let's say the full $0.505 per mile, does the recipient then need to report the difference as income on their tax forms?
You mentioned that it's OK to reimburse at a higher rate as long as it doesn't exceed actual operating expenses. How does one compute this, and, if one needs to keep actual operating expense records, why not reimburse the actual expenses rather mileage?
I look forward to your advice!
Roger Christianson
El Sauzal Foundation, Inc.
www.elsauzal.org/Foundation.html
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