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The Internal Revenue Service has issued the 2011 optional
standard mileage rates used to calculate the deductible costs of operating an
automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car
(also vans, pickups or panel trucks) will be:
- 51 cents per mile for business miles driven
- 19 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The standard mileage rate for business is based on an annual study of the
fixed and variable costs of operating an automobile. The rate for medical and
moving purposes is based on the variable costs as determined by the same study.
A taxpayer may not use the business standard mileage rate for a vehicle after
using any depreciation method under the Modified Accelerated Cost Recovery
System (MACRS) or after claiming a Section 179 deduction for that vehicle. In
addition, the business standard mileage rate cannot be used for any vehicle used
for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using
their vehicle rather than using the standard mileage rates.
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