IRS Releases 2011 Standard Mileage Rates
The Internal Revenue Service (IRS) has issued the 2011 optional standard mileage rates. Businesses utilize these rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
January 1, 2011 the standard rates for the use of a car (including vans, pickups or panel trucks) will be as follows:
- 51 cents per mile for business miles driven
- 19 cents per mile for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
An annual study of the standard mileage rates was conducted by an independent contractor, Runzheimer International. The study covers the fixed and variable costs of operating an automobile for both business and medical and moving purposes. Mileage rate studies are an important tool for businesses because many of today’s workers drive for business, travel or work off-site.
Taxpayers may not use the business standard mileage rate for vehicles after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for the vehicle in question. Additionally, the business standard mileage rates cannot be utilized in the following situations:
- For any vehicle used for hire, or
- For more than four (4) vehicles used simultaneously.
This federal law provides a transportation tax allowance for qualified businesses.
The Revenue Procedure 2010-51 includes additional information regarding standard IRS mileage rates. Please visit the Internal Revenue Service for the 2011 rates.