Posts Tagged ‘standard mileage rates’

IRS Announces 2012 Standard Mileage Rates

Friday, December 9th, 2011

The exclusive purpose for the information which is provided from this website is to disseminate  information, and not to provide tax advice.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.  The “standard mileage rates” provide a basis for accumulating and claiming the costs for operating motor vehicles while simultaneously avoiding the administrative burden of maintaining a system to document the actual vehicle operating costs.  Additionally, if  accurate written records have been maintained throughout the year, taxpayers have the option to use the method which provides the greater tax deduction.  The IRS rate standards provide for a “per mile” rate for three major categories of vehicle operating expenses:

  • Business miles driven
  • Medical and moving purposes, and
  • Charitable organization activity support

While the rates for each major activity are usually set at the end of the previous tax year for the coming year, in the past several years the IRS has revised the rates during the calendar year (usually mid year) to reflect the higher cost per gallon for fuel.   (more…)