Mileage Rates Changed beginning July 1 2011
The IRS standard mileage rate for the final six months of 2011 was increased as a result of the recent increase in gasoline prices. The IRS usually only adjusts this rate annually in the fall.
This is the second time in the past 3 years however that they have done this.
The standard mileage rate was increased by 4.5 cents for business, medical and moving travel for the last six months of 2011. Charitable travel remained unchanged at 14 cents per mile as this rate is set by statue, not the IRS.
The standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Mileage Rates for July 1, 2011 to December 31, 2011 are:
- Business: 55.5 cents per mile (Compared to first six months at 51 cents per mile).
- Medical: 23.5 cents per mile (Compared to first six months of 2011 at 19 cents per mile).
- Moving: 23.5 cents per mile (Compared to first six months of 2011 at 19 cents per mile).
- Charitable: Unchanged at 14 cents per mile.
Please be-sure you have started tracking your mileage as of July 1, so we can make the proper entry’s for you calculations on your returns.And yes we need your mileage from Jan 1 through June 30 too.
Prepare your taxes on-line With L & R Tax Preparation
L & R Tax Preparation
Tax Preparation, Payroll, and Accounting,
Including online services.
E=MC2 or use QuickBooks
