Which Should I Choose - Standard Mileage Deduction or Actual Costs?
In June, the IRS announced an increase in the standard mileage rates for the final six months of 2011 . In their news announcement, the IRS wrote, “This year’s increased gas prices are having a major impact on individual Americans so the IRS is adjusting the standard mileage rates to better reflect them.” For your convenience, here are the mileage rates for 2011: · Business: 55.5 cents per mile (Compared to 51 cents for 1 st six months) · Medical: 23.5 cents per mile (Compared to 19 cents for 1 st six months) · Moving: 23.5 cents per mile (Compared to 19 cents for 1 st six months) · Charitable: 14 cents per mile (Unchanged) Taxpayers can use one of two methods to deduct vehicles expenses: standard mileage rate and actual expense method. Traditionally I have ...