Mileage rate 2011, Standart announcment

The IRS has increased the standard mileage rate 2011 to 55.5 cents per mile for business miles driven from July 1, 2011 through December 31, 2011. Self-employed people can deduct their business miles using the standard mileage rate or by calculating actual costs. 

51 cents per mile for business miles driven

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. Beginning in 2011, a taxpayer may use the business standard mileage rate for vehicles used for hire, such as taxicabs.   

The IRS plans to discontinue publishing the standard mileage rate revenue procedure annually but will publish modifications as required.

Revenue Procedure 2010-51 and Notice 2010-88 contain additional details regarding the standard mileage rates.

The IRS announced the 2011 federal standard mileage rates.  These rates are used to deduct costs associated with operating a vehicle for medical, charitable or business purposes.

Effective January 1, 2011, mileage rates will be:

51¢ for each business mile driven.

The business standard mileage rate may not be used for:

• Vehicles used for hire.
• Vehicles that claim a section 179 deduction.
• More than four vehicles at the same time.
• Vehicles that use depreciation as part of the Modified Accelerate Cost Recover System (MACRS).

Additional information on mileage rates is available at the IRS website.