Internal Revenue Service is revising the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, or moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated.
This modification results from recent increases in the price of fuel.
The revised standard mileage rates are 55.5 cents per mile for business use of an automobile and 23.5 cents for use of an automobile as a medical or moving expense. (The mileage rate for use of an automobile as a charitable contribution is fixed by statute and remains 14 cents.)
The revised standard mileage rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after July 1, 2011, and to mileage allowances that are paid both (1) to an employee on or after July 1, 2011, and (2) for transportation expenses an employee pays or incurs on or after July 1, 2011.
Practical Note: If you expect to use the Optional Standard Mileage Rate for vehicle expenses in 2011, record your vehicle mileage on July 1, 2011 and keep it in a safe place.
From IRS Announcement 2011-40
