Many of the uncertainties affecting most everyone are finally being cleared up. While 2010 is nearly over, there is still time for last minute planning. The best news of all is that we finally have solid information from which to build our tax plans. While there is much more to come, let’s start with something fairly straight forward.
Standard Mileage Rates Announced for 2011
The IRS has announced the optional standard mileage rates for use in computing the deductible costs of operating a passenger automobile for business, charitable, medical, or moving expense purposes.
Effective January 1 through December 31 of 2011, the standard mileage rates are as follows:
Business use of auto: 51 cents per mile may be deducted (up from 50 cents per mile in 2010) if an auto is used for business purposes
Charitable use of auto: 14 cents per mile may be deducted (remaining unchanged) if an auto is used to provide services to a charitable organization
Medical use of auto: 19 cents per mile may be deducted (up from 16.5 cents per mile in 2010) if an auto is used to obtain medical care (or for other deductible medical reasons)
Moving expense deduction: 19 cents per mile may be deducted (up from 16.5 cents per mile in 2010) if an auto is used to effect a work-related move to a new home
IR-2010-119 contains additional details.