2012 IRS Mileage Rates

By February 15, 2012 Businesses, Individuals
Announcing new IRS mileage rates for 2012.   55.5 cents per mile continues to be the business mileage rate. The medical and moving IRS mileage rates drop .5 cents to 23 cents per mile. The charitable mileage rate, which is changed only by statute, remains at 14 cents per mile.

The IRS announcement also contained some friendly reminders for businesses with vehicles.  Don’t forget that you cannot write off actual expenses (including depreciation) on a vehicle that you are also taking business mileage on.  That includes Section 179 depreciation.

The IRS states that the business mileage rate cannot be used on more than four vehicles at one time.  Keep that in mind when deciding how to write off your next vehicle.

Also, don’t forget that the IRS is looking to see commuting mileage as part of the breakdown that you report on your taxes.  Commuting includes your travel to and from your main place of business.  It may also include your first trip out and last trip home during the day if you do not have a main place of business.  Consult with your tax accountant about what needs to be reported for commuting mileage.

GunnChamberlain is avaiable for any questions you might have regarding IRS mileage rates.