Deductible For Business Travel Increased by IRS
In light of recent gasoline price hikes, the Internal Revenue Service has increased the optional standard mileage rates used to calculate the deductible costs of operating a vehicle for business and other purposes. For the remainder of 2011, the rate will increase from 51 cents to 55.5 cents per mile for all business miles driven between July 1, 2011 and Dec. 31, 2011. The new six-month rate for deductible medical or moving expenses will increase to 23.5 cents a mile, up 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 a mile.
