IRS Increases Standard Mileage Rate
IR News Release 2011-69 announced that the IRS has increased the mileage rate for the second half of 2011.
Effective July 1, 2011 through December 31, 2011 the mileage rate for business travel is 55.5 cents per mile. Medical and moving mileage will increase to 23.5 cents per mile. The rate for charitable mileage remains unchanged at 14 cents per mile.
The IRS normally updates the mileage rate annually but in the midst of rising gas prices they have made a midyear increase to the mileage reimbursement rate. If you claim the standard mileage rate remember to keep track of your mileage separately for the periods January 1, 2011 through June 30, 2011 and July 1, 2011 through December 31, 2011 to take advantage of the higher rate effective for the second half of the year.
If you are not satisfied with the IRS’ estimate of 55.5 cents per mile, you can always calculate your actual cost of operating a vehicle, but be sure to keep records and be able to defend the business use of your vehicle.
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