Standard Mileage Rates Increase on July 1st

When a manager gets a vote of confidence in baseball, he should usually start worrying that his job is in danger. After the IRS earlier this year stated that they would not increase the mileage rates, I began to believe they would. Once again the cynics have been proven right.

The Internal Revenue Service today 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.

The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.

Also increasing are medical and moving expenses from $0.19 to $0.235 per mile. The charitable deduction mileage rate, $0.14, is set in a statute so only Congress can change that.


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