We’re going to take a quick reprieve from discussing business retirement planning in order to pass out some information recently released by the IRS. For the majority of us, the rising price of gas has not gone unnoticed. With Announcement 2011-40, the IRS has taken notice as well by establishing a new standard mileage rate for the final six months of 2011. The optional standard mileage rates can be used by taxpayers for computing the deductible costs of operating an automobile for business, medical, or moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated.
The revised standard mileage rates effective July 1, 2011 are as follows:
• Business: 55.5 cents per mile
• Medical: 23.5 cents per mile
• Moving: 23.5 cents per mile
• Charitable: 14 cents per mile (no change from previous rate)
In lieu of using the standard mileage rates, taxpayers always have the option of calculating the actual costs of using their vehicle. If you own your business, this is a conversation you should be having with your CPA. Owning your automobile through your business can be tax advantageous under the right circumstances. If you are asking yourself that question and not receiving any advice, then contact our Firm and we will be glad to assist you in that decision.
brad@mcarthurco.com
704.544.8429
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