IRS Increases Standard Mileage Rate in Light of High Gas Prices

In light of the increase in gas prices, the IRS announced today (IR-2011-69; Announcement 2011-40) a 4.5-cent increase for July 1, 2011 through December 31, 2011 in the optional standard mileage rates used to calculate the deductible costs of operating an automobile:

• Business use of a car:  55.5 cents per mile (up from 51 cents)
• Medical and moving use of a car:  23.5 cents per mile (up from 19 cents)

The rate for charitable use of a car is set by statute and thus remains at 14 cents per mile.