After saying for months that it would not, the IRS has increased the standard mileage rate for computing the deduction for business use of a vehicle for the last half of 2011. Beginning July 1, 2011, the business mileage rate will be 55.5 cents, up from the existing 51 cents. The revised rate for medical or moving mileage is 23.5 cents, up from the existing 19 cents. The mileage rate for charitable use of an automobile is fixed by Congress and remains at 14 cents. This modification results from recent increases in the price of fuel. What this means for you is that for tax year 2011, miles driven in the first half of this year will be deducted at a lower rate than miles driven during the last half of the year. This split-year rate also occurred in 2008.
2 comments
Conrad Sumption
December 30, 2011 at 4:34 pm (UTC 0)
I love your blog.. very nice colors & theme. Did you create this website yourself? Plz reply back as I’m looking to create my own blog and would like to know wheere u got this from. thanks
lisa_stiffler
January 3, 2012 at 9:03 pm (UTC 0)
Thanks I have a fabulous web guy and he keeps me up to date on the technical side. Olympus Web is his company. – Thanks Lisa