2006 IRS Mileage Rate

Written by Reed Tinsley | December 5, 2005

IRS Lowers Mileage Rate for 2006

IRS has announced that the optional standard mileage rate has decreased 4¢ to 44.5¢ a mile for all business miles driven after 2005, down from 48.5¢ for the last four months of 2005. The rate for computing deductible medical or moving expenses after 2005 is decreased to 18¢ a mile, down from 22¢ for the last four months of 2005.

Background. Although IRS normally updates the mileage rates once a year in the fall for the next calendar year, back in Sept. IRS increased the optional standard mileage rates for the last four month of 2005 by 8¢ to 48.5¢ a mile. IRS made this special adjustment in recognition of gasoline price increases.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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