The Internal Revenue Service has issued the 2007 optional standard mileage rates used to calculate

the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning Jan. 1, 2007, the standard mileage rates for the use of a car (including vans, pickups

or panel trucks) will be 48.5 cents per mile for business miles driven; 20 cents per mile driven for

medical or moving purposes; and 14 cents per mile driven in service to a charitable organization.

The new rate for business miles compares to a rate of 44.5 cents per mile for 2006. The new rate

for medical and moving purposes compares to 18 cents in 2006. The primary reasons for the higher

rates were higher prices for vehicles and fuel during the year ending in October.