Special Mileage Rate Increases
by Lisa M. Rico , posted Fri, Jun 24, 2011 5:03 PM
On June 23rd, the IRS issued Announcement 2011-40 announcing the increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.
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 increase is in recognition of recent gasoline price increases.
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. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
Mileage Rate Changes
|
Purpose
|
Rates 1/1 through 6/30/11
|
Rates 7/1 through 12/31/11
|
|
Business
|
51
|
55.5
|
|
Medical/Moving
|
19
|
23.5
|
|
Charitable
|
14
|
14
|