Rulings for the Last Quarter 2005
On September 9, 2005, the IRS announced an increase to the optional standard mileage deduction rates for the last four months of 2005. This decision was made in response to the recent increases in the price of gasoline and may be reconsidered for 2006 if prices decline.
Business Mileage: 48.5 cents per mile for September through December 2005, up from 40.5 cents per mile for the first 8 months of 2005;
Deductible Medical/Moving Mileage: 22 cents per mile for September through December 2005, up from 15 cents per mile for the first 8 months of 2005;
Charitable Mileage: 14 cents a mileage for the entire 2005 tax year.
The IRS has granted individual taxpayers a waiver on limits to cash charitable contributions for the last four months of 2005. This means that an individual’s cash contributions will no longer be subject to 50% of his/her adjusted gross income. In addition, the 10% limit on corporate charitable contributions has been lifted for all contributions to charities involved in the relief effort for the victims of hurricanes Katrina and Rita.
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