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IRS INCREASES MILEAGE RATE TO 55.5 CENTS
The Internal Revenue Service has increased the optional standard mileage rates for the final six months of 2011 to 55.5 cents per mile from 51 cents per mile. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.
This rate increase will be effective for all business miles driven from July 1, 2011, through Dec. 31, 2011. In recognition of recent gasoline price increases, IRS made this special adjustment for the final months of 2011.
The new six-month rate for computing deductible medical or moving expenses will also increase 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.
For more information, see PAG's "Auto Expenses and Benefits" chapter.