Effective July 1st, 2011, the optional standard mileage rate is being increased to 55.5 cents/mile. This new rate will be in place from July 1st, 2011 through December 31st, 2011. Typically the IRS only increases the optional standard mileage rate once a year, but decided to help tax payers with the increased cost of gasoline.
For the first 6 moths of the year (January 1st – June 30th, 2011), the optional standard mileage rate will stay at the the previous 51 cents/mile rate.
The medical/moving mileage rate also increased to 23.5 cents/mile for the last 6 months of the year.
The rate for providing services for charitable organizations did not increase. The reason being the rate for providing services to charitable organizations is set by statute, not the IRS. The standard mileage rate for providing services for charitable organizations will remain at 14 cents/mile.
For additional information, please see IRS Announcement 2011-40.
Michelle is the owner of Trailhead Accounting Solutions CPA, LLC, an Erie, CO based CPA firm focused on providing small and mid-sized businesses with day-to-day accounting, bookkeeping, and business solutions. Michelle is a CFO turned consultant who loves working with small businesses and entrepreneurs. When she’s not crunching numbers, she can be found hiking, remote camping, gardening, quilting, and hanging out with her family.