IRS Mileage Rates 2011
BThe 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 through June 30, 2011 ***55.5 cents per mile Jul 1 - Dec 31, 2011
- 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
more than four vehicles used simultaneously. The IRS is requesting
public comments on whether taxpayers should be allowed to use the
business standard mileage rate in this circumstance.
Beginning in 2011, a taxpayer may use the business standard mileage rate for vehicles used for hire, such as taxicabs.
Also beginning in 2011, the standard mileage rates are announced in a
separate notice, which also provides the amount a taxpayer must use in
calculating reductions to basis for depreciation taken under the
business standard mileage rate and the maximum standard automobile cost
for automobiles under a FAVR allowance. The IRS plans to discontinue
publishing the standard mileage rate revenue procedure annually but will
publish modifications as required.
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 and Notice 2010-88 contain additional details regarding the standard mileage rates.