Update: IRS Increases Mileage Rates Effective July 1, 2011

Update posted on June 29 2011 Back to Blog

The Internal Revenue Service has announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.

Beginning on July 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
• 55.5 cents per mile driven for business purposes
• 23.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The rate increases pertain to miles driven from July 1, 2011, through Dec. 31, 2011.

The IRS made this special adjustment for the final months of 2011 in recognition of recent gasoline price increases.

IRS Circular 230 Disclosure - As required by IRS rules, although this written communication may address certain tax issues, the issuer of this document did not intend nor write the advice to be used to avoid any penalty imposed by a taxing authority, nor may the user/recipient of this document use this document’s written tax advice for that purpose. Nor may it be used to promote, market or recommend to another party any transaction or matter addressed herein.