New IRS Mileage Rates
The IRS has increased the standard mileage rates for the final six months of 2011. The standard business mileage rate increased to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51-cent rate in effect for the first six months of 2011, and was based on increases in the price of gasoline. IRS Commissioner Doug Shulman explained, "This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices. We are taking this step so the reimbursement rate will be fair to taxpayers."
The standard business mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. It is also used by many employers in reimbursing employee business miles.
Adjusted Mileage Rates for 2011 (in cents per mile)
|Purpose||January 1 through June 30, 2011||July 1 through December 31, 2011|
|medical and moving||19||23.5|