In response to the increase in gas prices, the IRS announced an increase in the optional standard mileage rates for the last six months of 2011. The following are the rate changes which are contained in Announcement 2011-40:
|Purpose of Miles||Rates 1/1-6/30/11||Rates 7/1-12/31/11|
|Business||51 cents||55.5 cents|
|Medical||19 cents||23.5 cents|
|Moving||19 cents||23.5 cents|
The standard mileage rates for services provided to charitable organizations is set by statute, not the IRS, therefore, the rate of 14 cents remains through the end of 2011.
The standard mileage rates can be used to calculate the deductible costs of operating a vehicle in lieu of tracking actual costs. Additionally, the standard mileage rates are often used as benchmarks when determining reimbursements to employees for mileage. Please keep track of your mileage in order to substantiate the business mileage driven during the year. Key items to capture in your business mileage log: