Internal Revenue Bulletin - December 10, 2007 - Rev. Proc. 2007-70

Internal Revenue Bulletin - December 10, 2007 - Rev. Proc. 2007-70: "SECTION 2. SUMMARY OF STANDARD MILEAGE RATES

.01 Standard mileage rates
(1) Business (section 5 below) 50.5 cents per mile
(2) Charitable contribution (section 7 below) 14 cents per mile
(3) Medical and moving (section 7 below) 19 cents per mile

.02 Determination of standard mileage rates. The business and medical and moving standard mileage rates reflected in this revenue procedure are based on an annual study of the fixed and variable costs of operating an automobile conducted on behalf of the Service by an independent contractor. The charitable contribution standard mileage rate is provided in § 170(i) of the Internal Revenue Code.
SECTION 3. BACKGROUND AND CHANGES

.01 Section 162(a) allows a deduction for all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business. Under that provision, an employee or self-employed individual may deduct the cost of operating an automobile to the extent that it is used in a trade or business. However, under § 262, no portion of the cost of operating an automobile that is attributable to personal use is deductible."