The IRS recently announced that it is 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 is deemed substantiated. This modification results from recent increases in the price of fuel. These increased rates are effective July 1, 2011.
- Business Use increases to 55.5 cents per mile (up from 51 cents for the first half of 2011.
- Medical & Moving increases to 23.5 cents per mile (up from 19 cents for the first half of 2011
- Charitable rate is statutory and remains fixed at 14 cents per mile.
The revised standard mileage rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after July 1, 2011, and to mileage allowances that are paid both (1) to an employee on or after July 1, 2011, and (2) for transportation expenses an employee pays or incurs on or after July 1, 2011.