STANDARD MILEAGE RATE INCREASED FOR LAST HALF OF 2011

The IRS has increased the standard mileage rate for the last half of 2011 because of recent increases in the price of fuel. The standard mileage rate can be used to calculate the deductible cost of operating an automobile for business or other purposes.

Beginning July 1, 2011, the business mileage rate will be 55.5 cents (up from 51 cents for the first half of the year). The new rate for medical or moving mileage will be 23.5 cents (up from 19 cents). The rate for charitable use is fixed by Congress and remains at 14 cents.

If you track mileage for business or other purposes, your preparer will need to know how many miles were driven in each half of the year in order to prepare your 2011 return.

(June 30, 2011)

[Back]