2011 Mileage Rate IRS Standard Deduction Amount Set

10 Flares 10 Flares ×

Update: Information for the IRS mileage rate 2013 is here. This article is about the 2011 mileage rates published by the IRS.

When deducting eligible automobile expenses, taxpayers have the option of deducting actual expenses or using the optional standard mileage rates to deduct automotive expenses. Because, the records required in order to deduct the actual expenses and depreciation of a car expenses are extensive and detailed, most people opt to use the standard mileage deduction.

automobile expenses deductionIn addition, many businesses use the standard IRS mileage rates to reimburse employees for miles driven for work purposes. This both ensures that the company can deduct those reimbursements fully as a business expense, and that there is no disagreement about what the mileage reimbursement rate should be since an impartial government agency is the one that sets it.

The mileage deduction rate is adjusted every year. The standard 2011 tax deduction mileage rate has been published.

Standard IRS 2011 Mileage Rates

Beginning on January 1st, 2011, the standard mileage rates for calculating the deductible costs of operating a car or truck for business purposes is 51 cents per mile. Remember that although you cannot deduct the cost of commuting to a job, you can take a small business deduction for miles driven for the business.

The standard mileage deduction for deducting moving expenses is 19 cents per mile. The mileage rate for 2011 for medical expenses deductions is also 19 cents per mile.

The 2011 standard mileage rate for miles driven in service of eligible charitable organizations is 14 cents per mile.

Remember that to claim any deduction for miles driven you must have detailed contemporaneous records. That means that you need to keep a log of all miles driven and that the log must be updated as the car is used, not at a later date. To meet the IRS rules for deducting miles driven for business purposes, simply record the beginning and ending mileage as well as the date for all business trips or other deductible miles driven.

If you want to take it a step further, change the color of the pen ink every so often as a way to “demonstrate” that the log was indeed compiled over many different time periods. (It isn’t “proof”, but it does look good if you ever have to argue that your mileage records are legitimate.)

New 2011 Mileage Rate Rules

Beginning in 2011, people can use the standard business mileage rate for vehicles that are hired such as taxicabs and limousines. However, remember that you must record all such mileage with contemporaneous records just like regular mileage deductions.

IRS Mileage Rate 2011 Second Half

Due to higher gas prices in 2011, the IRS increased the standard mileage deduction rate in 2011 to 55.5 cents for the final six months of the year.

10 Flares Twitter 3 Facebook 1 Google+ 4 Pin It Share 0 LinkedIn 2 10 Flares ×

Tags: , , , , ,

4 Comments on 2011 Mileage Rate IRS Standard Deduction Amount Set

  1. [...] 2011 tax numbers released each year by the IRS. Some of these numbers change every year, like the 2011 mileage rate, that varies according to the average gasoline prices during the year. Others change according to [...]

  2. Gail says:

    Given that a gallon of gasoline is $4.00 and the price of oil/tires goes up also, not to mention how much a car costs these days. I feel those of us who get paid mileage are on the loosing end at .51 cents. There is also the fact that we burn gas waiting on red lights, traffic, trains which does not give us miles to be reinbursed for. How can they set this price and say that’s what it is for the whole year?

    • Ironically, they have adjusted it at 6 month intervals. Usually when they think that the rate is too high (will cost tax revenue). Otherwise, the theory is that the 51 cents is the average cost of not only gas but also maintenance and wear and tear on the vehicle. You can’t do anything about what an employer will pay as a reimbursement, but for tax purposes you can always keep your records and claim the actual expenses if you think that they will be higher.

  3. [...] on individual Americans." The 2011 IRS mileage rate increased to 55.5 cents per mile from the original IRS 2011 mileage deduction rate of 51 cents, which still applies to the first six months of [...]

Leave a Reply

10 Flares Twitter 3 Facebook 1 Google+ 4 Pin It Share 0 LinkedIn 2 10 Flares ×