Hot off the presses:
The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.
The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.
In addition, the per mile rate is also increased for medical and moving use: from 19 cents to 23.5 cents. The mileage rate for charitable use of a car is stuck at 14 cents, however.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. When you’re paying $4.00 per gallon on your way to the beach this summer, remember who loves you.