IRS increases the business mileage rate

Based upon recent gasoline price increases, the IRS has announced new business mileage rates for the second half of the 2011 tax year.

• According to IRS Commissioner, Doug Shulman: "This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices. We are taking this step so the reimbursement rate will be fair to taxpayers."
• The price for gasoline is just one of the many factors taken into consideration for the increase. Other factors such as depreciation of vehicles, insurance, and other fixed and variable cost associated with business traveling taxpayers were also considered.
• Also affected by the new mileage rates, are the Medical and Moving mileage deductions. These rates have increased by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011.
• Note: The rate for miles driven for the purpose of a chariatble contribution, remains unchanged at 14 cents a mile.
• Learn more about the "IRS Mileage Rate Increase" by visiting the following IRS site:www.irs.gov/newsroom/article/0,,id=240903,00.html