Road rage? IRS cuts mileage deduction - Dec. 5, 2005

Road rage? IRS cuts mileage deduction - Dec. 5, 2005: "Road rage? IRS cuts miles writeoff
Tax agency trims the increased mileage deduction that was granted after Katrina raised gas prices.

NEW YORK (CNNMoney.com) - The Internal Revenue Service is scaling back its mileage deduction, which had received an unusual late-year bump when gasoline prices soared following Hurricane Katrina.

The tax agency will allow taxpayers to deduct 44.5 cents per mile for business miles driven. That's down eight percent from the rate for the last four months of this year, but up about 10 percent from the rate in effect before Katrina.

In addition, drivers will be able to deduct 18 cents per mile driven for medical or moving purposes and 14 cents per mile driven in service of most charitable organizations. The new rates take effect Jan. 1."