IRS Increases Mileage Rate to 55.5 Cents per Mile
An increase in the optional standard mileage rates for the final month of 2011 has been announced by the Internal Revenue Service. For all business miles driven after July 1, 2011 through the end of the year, the rate will increase to 55.5 cents a mile, which is a 4.5 cent increase. While the IRS usually updates the mileage rates once a year in the fall for the next year, the IRS made this change due to the raise in gas prices affecting individual Americans. The standard business mileage rate can be used to compute the deductible costs instead of tracking actual costs, which can also be used by federal government and many businesses that reimburse employees for their mileage. Also, there is an increase by 4.5 cents to 23.5 cents a mile for computing deductible medical or moving expenses. There is still the option for taxpayers to calculate their actual costs instead of using the standard mileage rates.
For more information, please contact Wood, Atter & Wolf, P.A., in Jacksonville and Ponte Vedra Beach, Florida.
