The IRS has announced an increase in the optional standard mileage rates for the final six months of 2011. Citing "recent gasoline price increases," the IRS has increased the standard business mileage rate from 51 cents to 55.5 cents a mile for all business miles driven from July 1 through December 31, 2011. The rate for deductible medical or moving expenses is increased from 19 cents to 23.5 cents a mile. Note: The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
The mileage rate may be used to compute the deductible cost of operating a passenger car (also vans, pickups, or panel trucks) for business purposes. It may also be used by employers to reimburse employees for business use of their personal vehicles and to determine the amount that needs to be imputed to an employee's income for personal use of certain company-owned or leased nonluxury vehicles.
Mileage Rate Changes
Purpose Rates 1/1 to 6/30/11 Rates 7/1 to 12/31/11
Business 51 55.5
Medical/Moving 19 23.5
Charitable 14 14
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