By Shelly Toft, CPA, Manager
Due to the increase in fuel costs, the IRS has increased the optional standard mileage rates for business, medical or moving expenses. Effective July 1, 2011, the rate for business use of an automobile will be increased from 51 cents to 55.5 cents per mile. The rate for medical or moving expense will be increased from 19 cents to 23.5 cents per mile.
For income tax purposes, it will be necessary to break down your mileage between January 1 – June 30 and July 1 – December 31, so please keep records of your monthly mileage.
The rate for charitable use remains unchanged at 14 cents per mile. Please contact us if you have any questions about the increased mileage rate.