The Internal Revenue service has announced the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, medical, moving, or charitable purposes. Beginning January 1, 2011 the standard mileage rates for these uses will be:
51 cents per mile for business miles driven
19 cents per mile for medical or moving purposes
14 cents per mile for service of a charitable organization
A taxpayer may not use the business standard mileage rate for a vehicle they are currently depreciating or have depreciated in the past. The standard mileage rate also is used instead of using actual vehicle costs such as fuel, repairs, etc. Therefore a comparison between actual costs and the standard mileage rate are recommended.
We recommend keeping an odometer log book to properly calculate and record business mileage.
For more information please contact our office.