| The IRS raises the Standard Mileage Rate due to rising Gas Prices!
The IRS has raised the standard mileage rate for business use of an automobile from 51 cents per mile to 55½ per mile, effective July 1, due to rising gas prices. Also, the medical and moving standard mileage rate is increasing to 23½ per mile, also on July 1.
The IRS stated that the new optional standard mileage rates will apply until superseded by future guidance and can be used by taxpayers to calculate the deductible costs of operating an automobile. The IRS has further stated that taxpayers can instead use their actual costs, but must maintain adequate records and be able to substantiate their expenses.
Per the IRS, "the standard mileage rate for services to charitable organizations is set by statute at 14 cents per mile and remains unchanged by Thursday’s announcement. The former rates announced in Notice 2010-88 (51 cents per mile for business use, 19 cents per mile for medical and moving expenses) continue to apply to expenses incurred before July 1, 2011."
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