IRS has revised upwards the standard mileage rates due to the higher gas prices Beginning this July 1st, the standard mileage rates will be 55.5 cents per mile for business travel and 23.5 cents per mile for medical travel. Charitable mileage rate always remains at 14 cents under statute. The rates for the first half of 2011 are 51 cents and 19 cents respectively. Keep in mind these rates are optional and the actual out-of-pocket costs can be used in lieu of the standard rates.
Announcement 2011-40 advises the public that the Internal Revenue Service 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. The revised standard mileage rates are 55.5 cents per mile for business use of an automobile and 23.5 cents for use of an automobile as a medical or moving expense. The mileage rate for use of an automobile as a charitable contribution is fixed by statute and remains 14 cents. 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.
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