IRS INCREASES MILEAGE RATE BY 4.5 CENTS |
On June 23, 2011, the IRS announced a 4.5 cent increase in optional standard mileage rates for the last half of 2011.
The rate will increase to 55.5 cents per mile for all business miles driven from July 1, 2011, through December 31, 2011, up 4.5 cents from the 51 cent rate in effect for the first six months of 2011.
According to the IRS, which normally updates the mileage rates once a year, this rare mid-year decision was fueled by the recent rise in gas prices.
The new mileage rate for deductible medical and moving expenses is 23.5 cents per mile, up 4.5 cents from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents per mile.
Mileage Rate Changes:
Purpose |
Mileage Rates Jan. 1 through June 30, 2011 |
Mileage Rates July 1 thru Dec. 31, 2011 |
Business |
51 cents |
55.5 cents |
Medical/Moving |
19 cents |
23.5 cents |
Charitable |
14 cents |
14 cents |
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