From Carol McAtee’s CPA firm in St. Petersburg, FL –In response to higher gasoline prices, the IRS has raised the standard mileage rates for deductable use of an automobile, effective July 1, 2011. The rate increase is 4.5 cents per mile for business use and half a cent per mile for medical and moving purposes. The rate for charitable organizations remains unchanged at 14 cents per mile.
Based on this change, miles driven for business from January 1 through June 30, 2011 are deductable at 51 cents per mile and miles driven from July 1 through December 31 are deductable at 55.5 cents per mile. Miles driven for medical or moving purposes from January 1 through June 30, 2011 are deductable at 19 cents per mile, and miles driven from July 1 through December 31, 2011 for medical or moving are deductable at 19.5 cents per mile. Additionally, any miles driven for charitable purposes in 2011 are deductable at 14 cents per mile.
Taxpayers should keep adequate records on miles driven for the deductable purposes described above, so that they can correctly include the auto use deduction when filing their tax return and lower their tax liability. As tax professionals, McAtee & Associates can help both individual and business taxpayers with all their tax matters. Contact us for assistance in all of your financial and tax matters.
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