Standard Mileage Rate

If you use your car in your business, you can figure your deduction for business use based on either your actual costs or the optional standard mileage rate. For 1998, the optional standard mileage rate for the cost of operating your car in your business is 32.5 cents a mile for all business miles. The special rate for rural mail carriers is repealed. See Rural mail carriers in chapter 1.

Rate extended to leased cars. You can now use the standard mileage rate for a car you lease, as well as a car you own. Previously, you could only use actual car expenses if you did not own the car.

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