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IRS Announces 2011
Standard Mileage Rates
December 13,
2010
The Internal Revenue Service
today issued the 2011 optional standard mileage rates
used to calculate the deductible costs of operating
an automobile for business, charitable, medical or moving
purposes.
Beginning on Jan. 1, 2011, the standard mileage rates
for the use of a car (also vans, pickups or panel trucks)
will be:
• 51 cents per mile
for business miles driven
• 19 cents per mile driven for medical or moving
purposes
• 14 cents per mile driven in service of charitable
organizations
The standard mileage rate
for business is based on an annual study of the fixed
and variable costs of operating an automobile. The rate
for medical and moving purposes is based on the variable
costs as determined by the same study. Independent contractor
Runzheimer International conducted the study.
A taxpayer may not use
the business standard mileage rate for a vehicle after
using any depreciation method under the Modified Accelerated
Cost Recovery System (MACRS) or after claiming a Section
179 deduction for that vehicle.
In addition, the business
standard mileage rate cannot be used for more than four
vehicles used simultaneously. The IRS is requesting
public comments on whether taxpayers should be allowed
to use the business standard mileage rate in this circumstance.
Beginning in 2011, a taxpayer
may use the business standard mileage rate for vehicles
used for hire, such as taxicabs.
Also beginning in 2011,
the standard mileage rates are announced in a separate
notice, which also provides the amount a taxpayer must
use in calculating reductions to basis for depreciation
taken under the business standard mileage rate and the
maximum standard automobile cost for automobiles under
a FAVR allowance. The IRS plans to discontinue publishing
the standard mileage rate revenue procedure annually
but will publish modifications as required.
Taxpayers always have the
option of calculating the actual costs of using their
vehicle rather than using the standard mileage rates.
Source: IRS
Toscano & Ardito,
P.C.
40 Bayfield Drive
North Andover, MA 01845
Tel. 978-688-2880
Fax 978-688-2759
Contact Us:
info@tandacpa.com
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