IRS Mileage Rate Up

[Jiggers]

WASHINGTON - The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011

[RLymanC]

Mileage

Like gas prices didn't go up till July...LMAO

[zeros]

Do An Average?

Why can't the IRS come up with "one" rate to use on the tax return? Would that make it too easy for us taxpreparers? Huh?

[Jiggers]

Why can't the IRS come up with "one" rate to use on the tax return? Would that make it too easy for us taxpreparers? Huh?

Because so many business have reimbursed their employees at the 51¢ rate. Would they have to make it up if the IRS did a mileage rate that was a blend of the 51¢ and the 55.5¢?

Besides, my clients will like this. The last time the IRS did this split rate, my clients all had significantly more mileage in the last 6 months of the year than the first 6 months! I know I will (travel for CPE, etc.)

[BOB W]

Because so many business have reimbursed their employees at the 51¢ rate. Would they have to make it up if the IRS did a mileage rate that was a blend of the 51¢ and the 55.5¢?

Besides, my clients will like this. The last time the IRS did this split rate, my clients all had significantly more mileage in the last 6 months of the year than the first 6 months!

I found the strange too... duh...............

[Burke]

WASHINGTON - The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011

Did they raise the others as well? Charitable, moving, medical.......

[Jiggers]

Medical & Moving to 23.5¢.

Charitable stays at 14¢.

[JohnH]

I always drive more business miles when the rate goes up. Bigger tax deduction means more money in my pocket - at least that's what my clients tell me.

[S T]

I feel a "headache" coming on - Guess it is time to send out the notice to clients to have them do some odometer readings as of 6/30/11 and get ready to revise my "Mileage Record Sheet" that I send out.

We all know that our clients keep impeccable and accurate records


Sandy

[Snaggletooth]

Diabolical Acid Test

WASHINGTON - The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011

Actually, the split year is an "acid test" as to whether a client is keeping a mileage log.

CLIENT: "Well, Jiggers, I have 23,658 miles on my mileage log."
JIGGERS: "Have you got everything documented? Destination, dates, purpose, etc?"
CLIENT: "Yep, shore do."
JIGGERS: "How many miles did you drive AFTER June 30th? We get an increased rate."
CLIENT: "I dunno. How am I supposed to figgur that?"
JIGGERS: "Let me see your log. If you've got everything recorded, should be easy."
CLIENT: "Whassamatter, don't you trust me? I'm going down the street...."

[dtlee]

Thanks for the heads up

Just a note....

The rate for the depreciation portion is remaining at 22 ¢ per mile (I confirmed that with the IRS since it was not announced).

I know no one needs this, but I updated this chart that goes back through 1980 in case anyone gets nostalgic:

http://nytaxexperts.org/Documents/HistoricalMileageRates.pdf

[DaveinTexas]

Charitable Mileage Rate Stays the Same

I like this part of the announcement. As if it costs you less in fuel, etc. when you drive around for charitable purposes. I know its a statute thing but come on. The only reason this has not been increased is because it's much easier to deduct charitable mileage than it is to deduct medical miles (AGI limitations, etc).

I suppose the IRS thinks that everyone who does charitable work drives one of those not so smart cars!

Have a great and safe 4th everyone! No fireworks for us, they are banned in about 220 counties and counting!!!

[Lion]

Thank You

Thank you very much, Doug, for sharing your chart with us. I appreciate it.

[FEDUKE404]

The real thing

Here is the official notice from the IRS:

http://www.irs.gov/newsroom/article/0,,id=240903,00.html

I've already sent, via cut/paste, my clients this information, along with a reminder that written, contemporaneous records are a positive!

FE