If you use your vehicle for work, medical purposes or moving, be aware of changes to the amount you can deduct for your mileage for the next 6 months.
In a statement released on June 23rd, 2011, the IRS announced an increase in the mileage rate to 55.5 cents per mile (an increase of 4.5 cents per mile). The mileage rate will be effective for all business miles driven between July 1, 2011 through December 31, 2011.
It is normal for the IRS to make mileage rate adjustments once a year based on a number of variables. According to the official announcement, The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices.
The mileage adjustment also applies to rates for moving or medical costs, which also increased 4.5 cents up to 23.5 cents per mile.
The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
You have the option of deducting the actual expenses, or you can use the standard optional mileage rate posted by the Internal Revenue Service.
For more complete details, please visit this page on the IRS Website: 2011 Standard Mileage rates.
If you need more information on how this effects you personally, or to learn about other possible tax deductions you can claim, please feel free to email us or give us a call to schedule an appointment.
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