Today, the Internal Revenue Services announced that the 2012 Standard Mileage Rates will take effect in January 2, 2012.
- 55.5 cents per mile for business miles driven
- 23 cents per
mile driven for medical or moving purposes
- 14 cents p
er mile driven in service of charitable organizations
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.
Please click on the link to read the details of this Announcement.
Business related mileage reimbursements shall be computed based on the above guidance from the IRS (Internal Revenue Services). The 2011 Guidance was published here in July 2011.
When unsure of the correct calculations and relevant business activities that can be reimbursed under the Standard Mileage Standards, please consult your accountant or someone with experience in this area.
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