Standard Mileage Rate is one way of deducting the cost of using your own vehicle for business, charity or medical purposes. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Here is the standard mileage rate for business, medical, and charitable use of your vehicle during tax year 2011.
Standard Mileage Rate for 2011
These rate went into effect on January 01, 2011, you can find the IRS announcement here.
| Purpose | Rate (in cents) |
| Business | 51 |
| Charitable | 14 |
| Medical or moving | 19 |
More from the IRS annoucement
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 more than four vehicles used simultaneously. The IRS is requesting public comments on whether taxpayers should be allowed to use the business standard mileage rate in this circumstance.
Beginning in 2011, a taxpayer may use the business standard mileage rate for vehicles used for hire, such as taxicabs.
Also beginning in 2011, the standard mileage rates are announced in a separate notice, which also provides the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate and the maximum standard automobile cost for automobiles under a FAVR allowance. The IRS plans to discontinue publishing the standard mileage rate revenue procedure annually but will publish modifications as required.
For comparison this is how the 2010 standard mileage rate looked here -
Standard Mileage Rate for 2010
| Purpose | Rate (in cents) |
| Business | 50 |
| Charitable | 14 |
| Medical or moving | 16.5 |
This is the rate you should be using for the 2010 tax return.
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