Tax & Accounting Blog

Mileage Expense Rates Increased Effective July 1, 2011

1099, ONESOURCE, Tax Information Reporting, Trust Tax July 18, 2011

The IRS raised the optional standard mileage rates effective July 1, 2011.  As a result of higher fuel prices, the mileage rate for the business use of an automobile on and after July 1 is 55.5 cents, an increase of 4.5 cents over the rate applicable to the first half of 2011.  A van, pickup truck or panel truck is counted as an automobile when using the standard mileage rates.   
The rate for use of an automobile for medical or moving purposes has also been raised to 23.5 cents per mile for use on and after July 1. 
These rates apply to expense reimbursements, for which the standard mileage rate can serve as substantiation instead of calculating vehicle-specific substantiated expense amounts.  The same rates also apply for purposes of deductible transportation expenses of a taxpayer.