This publication discusses common business expenses and explains what is and is not deductible. The general rules for deducting business expenses are discussed in the opening chapter. The chapters that follow cover specific expenses and list other publications and forms you may need.

The following items highlight some changes in the tax law for 2008.

Standard mileage rate. For 2008, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is:

Environmental cleanup costs. The election to deduct qualified environmental cleanup costs has been extended to cover costs paid or incurred in 2008 and 2009. See chapter 7.

Qualified disaster expenses. You can elect to deduct rather than capitalize any qualified disaster expenses you paid or incurred after 2007. See chapter 7.

Election to amortize business start-up and organizational costs. 

You are no longer required to attach a statement to your tax return to elect to amortize start-up or organizational costs paid or incurred after September 8, 2008. See chapter 8.

Marginal production of oil and gas. The temporary suspension of the taxable income limit on percentage depletion from the marginal production of oil and natural gas is not available for tax years beginning in 2008. See chapter 9.

Meal expenses when subject to “hours of service” limits. For 2008, you can deduct 80% of the reimbursed meals your employees consume while away from their tax home on business during, or incident to, any period subject to the Department of Transportation's “hours of service” limits. See chapter 11.

The following items highlight some changes in the tax law for 2009.

Standard mileage rate. The standard mileage rate for the cost of operating your car, van, pickup, or panel truck in 2009 is 55 cents a mile for all business miles.

Marginal production of oil and gas.  The temporary suspension of the taxable income limit on percentage depletion from the marginal production of oil and natural gas is available for tax years beginning in 2009. See chapter 9.

IRS e-file (Electronic Filing)

You can file your tax returns electronically using an IRS e-file option. The benefits of IRS e-file include faster refunds, increased accuracy, and acknowledgment of IRS receipt of your return. You can use one of the following IRS e-file options.

For details on these fast filing methods, see your income tax package.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.