News & Resources

New Mileage Rates for 2011

The IRS has Issued New Mileage Rates for 2011

The IRS issued the 2011 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Starting on January 1, 2011, the standard mileage rates for the use of a car, van, pickup or panel truck 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

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.

Please contact our tax professionals if you have questions about this, or any other tax issues. Call us at 877.517.6872.