New IRS Mileage Rates
Saturday, June 12, 2010
FROM THE IRS:
WASHINGTON - The Internal Revenue Service today issued the 2011
optional standard mileage rates used to calculate the deductible
costs of operating an automobile for business, charitable, medical
or moving purposes.
Beginning on Jan. 1, 2011, the standard mileage rates for the
use of a car (also vans, pickups or panel trucks) will be:
- 51 cents per mile for business miles driven
- 19 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable
organizations
The standard mileage rate for business is based on an annual
study of the fixed and variable costs of operating an automobile.
The rate for medical and moving purposes is based on the variable
costs as determined by the same study. Independent contractor
Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a
vehicle after using any depreciation method under the Modified
Accelerated Cost Recovery System (MACRS) or after claiming a
Section 179 deduction for that vehicle. In addition, the business
standard mileage rate cannot be used for any vehicle used for hire
or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs
of using their vehicle rather than using the standard mileage
rates.
Revenue
Procedure 2010-51 contains additional details regarding the
standard mileage rates.
ShareThis