OUR THOUGHTS ON:

IRS Revises Standard Mileage Rates for the Remainder of 2011

Tax

By Martin DiGiovine

On June 23, 2011, the Internal Revenue Service (“IRS”) issued Announcement 2011-40, revising the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical or moving expense purposes and for determining the reimbursed amount of these expenses that are deemed substantiated.

The revised standard mileage rates are:

  1. Business -  55.5 cents per mile
  2. Medical and Moving - 23.5 cents per mile

These new rates apply to deductible transportation expenses incurred on or after July 1, 2011, and to mileage allowances that are both paid to an employee on or after July 1, 2011 and paid or incurred by the employee on or after July 1, 2011.

For 2011 transportation costs incurred prior to July 1, 2011 the following rates, as prescribed in IRS Notice 2010-88, continue to apply:

  1. Business - 51 cents per mile
  2. Medical and Moving - 19 cents per mile

The mileage rate that applies to the deduction for charitable contributions remains at 14 cents per mile for all of 2011.

The mileage rate increases for the remainder of 2011 reflect the recent increases in the price of gasoline. The IRS normally updates the mileage rates only once a year.

© 2011 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

comments