Recently the IRS increased the standard mileage rate for personal use of a vehicle for business. As many small business owners are aware, this rate is the rate that employees can be reimbursed for business use of a personal car. If a company vehicle is used, business owners cannot take standard mileage rates.
For 2008 the standard mileage rate from July 1, 2008 through Dec 31, 2008 was 58.5 cents per mile.
For 2009 the standard mileage rate has been decreased to 55.0 cents per mile. This change has been effected through both increasing average cost of vehicle ownership, and the decreased relative cost of gasoline.