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We can use IRS mileage rate to deduct the operating cost associated with running car for business or for moving purposes as well as for medical use.

During 2008, The IRS mileage rates for using a car was increased to help offset the rising cost of fuel, but in January 1 2009, it has been amended.

Here are the current IRS mileage rates:

* For business miles: 55 cents/mile

* 24 cents per mile for any medical or moving reasons

* In the service of any charitable organizations: 14 cents per mile.

Always keep in mind that these rates are subject to change, so before you add these figures to your tax estimates, double check what the current rate is so you can be sure you are deducting the correct amounts from your taxable income.

Per Mile Calculation vs. Actual Cost Calculation

You may find that claiming standard IRS mileage rates for your car use may not be as much as you could claim by keeping the right record for the real costs incurred. Nevertheless, that also depending on the amount you use your vehicle.

That can mean calculating the actual costs incurred for things like personal property taxes, lease payments, depreciation, registration, fees, oil, tires, gasoline, insurance, maintenance, repairs and any other services.

You can also estimate whether the real operational costs of your car will generate a bigger tax deduction than using the standard IRS mileage rates instead.

You most likely will be asked to verify which part of overall usage for medical, moving purposes, or business use, and which part was for family or personal use.

When Can’t You Apply the Regular IRS Mileage Rates?

Tax payers aren’t able to use the standard IRS mileage rates for their car if they’ve already used any other method of depreciation or claimed any other deduction for that same vehicle.