The IRS may be feeling your pain at the pump. The result is an increase in the 2011 mileage rate. The standard mileage rate is going up to 55.5 cents for business miles driven between July 1 and December 31 of 2011. This is a 4.5 cent increase over the current effective rate of 51 cents. The medical and moving reimbursement rates are also going up from 19 cents per mile to 23.5 cents per mile. The charitable mileage reimbursement rate is not determined by the IRS and will therefore remain at 14 cents per mile.
This also means that at the end of the year, you will need to provide us with your mileage totals for January through June and for July through December to be calculated separately. You also have the option to calculate your actual vehicle costs instead of using the standard mileage rate, although the standard rate often yields a more favorable result.
Local business miles do not include your first trip out of the day or last trip of the day back to your home. These are classified as commuting miles and should be recorded separately on your mileage log. The last time the IRS split a year with a mileage rate change was 2008 when the rate went up 8 cents in July. At that time, gas was averaging well over $4 a gallon.
We will take some relief at the pump any way we can get it!
