Business Miles Rate Now 55.5 Cents Per Mile
The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. Due to recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. But note that while gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
Medical and Moving Expense Rate Now 23.5 Cents Per Mile
The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011.
Charitable Rate Remains At 14 Cents Per Mile.
As this rate is set by statue and not by the IRS, the IRS cannot change the rate from the current 14 cents a mile.
Taxpayers Can Use Actual Costs
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
