Since the IRS set 2005’s mileage rate for the business use of a car at 40.5 cents per mile back on November 17, 2004 (Rev. Proc. 2004-64), the retail price of a gallon of gasoline (regular grade) has increased 36% — from $1.91 to today’s $2.61. Because the cost of gas is such a large component of the per mile cost of operating a car, the Tax Guru speculates that the IRS will soon increase the 2005 mileage rate, perhaps by October 1.
IRS to Increase Business Mileage Rate?
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