The IRS revised the standard mileage rates for 2011 that apply to all employees, self-employed individuals and other taxpayers who use the figure to calculate deductible costs of operating a car for charitable purposes, business, medical or moving purposes. The rates for business, medical and moving purposes increased, however the rates for charitable purposes did not change from 2010.
Effective January 1, 2011, the standard mileage rate for using a car, pickup truck or van will be $.51 per mile. The rate for using a car for charitable purposes is $.14 per mile. The rate for using a car for medical or moving purposes is $.19 per mile.
The standard mileage rate cannot be used for: cars that are used for hire such as taxicabs, cars that claim a Section 179 deduction, for more than 4 cars simultaneously, or cars that use a depreciation method under the Modified Accelerated Cost Recovery System (MACRS).
Refer to the IRS website for more information on the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate and the maximum standard car cost for cars under a Fixed and Variable Rate (FAVR) allowance.
The IRS is requesting public comments on whether taxpayers should be allowed to use the business standard mileage rate.
No comments:
Post a Comment