IRS Increases Mileage Rate

06/23/2011

The Internal Revenue Service announced an increase in the optional standard mileage rates for the last six months of this year today. Click on this link for more information.

The optional standard mileage rate will increase to 55.5 cents per mile for all business miles driven from July 1, 2011 through December 31, 2011.  The effective rate through June 30, 2011 is 51 cents.  This is a positive move from the IRS considering their normal updates to the mileage rate generally occur once a year in the fall for the next calendar year.

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 half of 2011.  Because the mileage for charitable organizations is set by statute and not the IRS, that rate remains unchanged at 14 cents a mile.

As a business owner, you always have the option of calculating the actual costs of using your vehicle rather than using the standard mileage rate.  If you would like to know which calculation is more beneficial to you, we are available to help make that determination.  Just contact our office!

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