IRS announces new mileage rates for 2012

December 12th, 2011 → 5:44 pm @ Carol

From the IRS https://www.irs.gov/newsroom/article/0,,id=250882,00.html

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 55.5 cents per mile for business miles driven
• 23 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.

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.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

 

Note from Carol Topp, CPA: All of my tax clients use the standard mileage rate. It’s easier to calculate than actual expenses. The only person I know who uses actual expenses uses a truck 100% for business/farm use and has another vehicle for commuting and personal use.

 

 

Tags: IRS, mileage, mileage deduction, tax, tax deductions