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Article Author:

IRS Increases Mileage Rates for Remainder of 2011

The IRS increased the standard business, deductible medical, and moving mileage rates effective July 1, 2011 through December 31, 2011. Recognizing recent gas price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates in the fall for the next calendar year. There was no change to the mileage rate for charitable miles since it is set by statute, not the IRS.

The new rates are contained in Announcement 2011-40.

Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. The optional business standard mileage rate is used in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

New rates Beginning 7/1/11:

Standard Business Rate	55.5 cents per mile (previously 51 cents)
Medical Rate	23.5 cents per mile (previously 19 cents)
Charitable Rate	14 cents per mile (no change)

Please contact Kim Haumann at khaumann@BlackmanKallick.com or 312-980-3249 or your Blackman Kallick advisor with any questions.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.