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Positive: IRS To Increase 2011 Mileage Rates

Positive: IRS To Increase 2011 Mileage Rates

7 years ago
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By Staff Reports

(Victor Valley)–The Internal Revenue Service (IRS) recently announced an increase in the optional standard mileage rates for the final six months of 2011. The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through December 31, 2011. An increase of 4.5 cents from the 51-cent prior rate. The IRS made this special adjustment for the final months of 2011 in recognition of recent gasoline price increases. While the price of gas is a significant factor in calculating the mileage figure, other items enter into the calculation of mileage rates, such as depreciation, insurance and other fixed and variable costs. The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six month of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile. For more information, visit the IRS website at www.irs.gov.

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