Thursday, October 13, 2011

e-YWM Alert #17- Mileage Rate Increased to 55.5 cents



Due to recent gasoline price increases the Internal Revenue Service announced today that there will be an increase in the optional standard mileage rates to 55.5 cents a mile for the final 6 months of 2011. The optional standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. Taxpayers always have the option of calculating actual costs rather than utilizing these standard mileage rates.

Beginning July 1, 2011 the rate will increase 4.5 cents from the 51 cent rate in effect for the first six months of 2011. This increase will also apply to deductible medical or moving expenses which will be increased from the 19 cents used in the first six months of 2011 to 23.5 cents for the remainder of the year. Charitable miles remain unchanged.

For those of you who use the standard mileage rate, please be sure to track your miles for
January-June separately from the miles in July-December.

The table below summarizes the rates in effect for 2011:





If you have any questions please do not hesitate to contact us.


All information presented above is generic, if you would like to know how this may be applied to your specific situation please give us a call at 303-792-3020 or reply directly to this email. Additional resources are always available at our website www.ywmcpa.com.





Posted by Yanari Watson McGaughey P.C. at 11:06 AM
Labels: , ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Disclaimer


The information contained in this website is for general information purposes only. The information is provided by Yanari Watson McGaughey P.C. and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

Through this website you are able to link to other websites which are not under the control of Yanari Watson McGaughey P.C. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.

UNLESS EXPRESSLY STATED OTHERWISE, IN WRITING, THIS CORRESPONDENCE, INCLUDING ANY ATTACHMENTS HERETO, IS NOT INTENDED TO OR WRITTEN TO BE USED AND CANNOT BE USED BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING PENALTIES ASSERTED BY THE INTERNAL REVENUE SERVICE OR SANCTIONS PROPOSED BY THE DIRECTOR OF THE OFFICE OF PROFESSIONAL RESPONSIBILITY UNDER THE UNITED STATES TAX LAWS (THE FOREGOING STATEMENT IS MADE IN ACCORDANCE WITH CIRCULAR 230, 31 C.F.R. PART 10).

Free Counters
Free Counters