IRS Mileage Reimbursement Rate 2011

Each year the IRS issues new standard mileage reimbursement rate for vehicles used for business operations (driving to conventions and seminars, attending business meetings, visiting clients, shopping for supplies etc) charitable or non profit organizations and visiting the doctor or traveling to the pharmacy to buy prescription, which is referred to as medical mileage.

The mileage rate usually depends on the price of gasoline and other inflationary variables.

Effect January 1, 2011 the IRS mileage rate 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 IRS standard mileage rate for business mileage as decrease from 55 cents in 2010 to 51 cents.

    As compared to 2010 the cents per mile driven for medical or moving purposes has decrease from 24 cents per mile to 21 cents per mile.

    The rate for charitable organization has remained unchanged.

    In the event that the tax payer opt for the depreciation method (under the Modified Accelerated Cost Recovery System) of calculating vehicle expense deductions he or she can not use the standard mileage rate.

    In addition, tax payers should keep a mileage log, record the vehicle mileage at the beginning and end of the year as well as the mileage spent on every business trip.mileage

    Moreover, the business standard mileage rate can not be used for more than four vehicles at the same time. In the event the tax payers has more than 4 vehicles the depreciation method, which is calculating the actual costs of using their vehicle should be used

    The mileage rate deduction now extends to hired vehicles such as taxicabs and moving companies.

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