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IRS Releases 2011 Standard Mileage Rates - Emil Estafanous, CPA : Emil Estafanous, CPA

IRS Releases 2011 Standard Mileage Rates

The IRS expelled on Dec 3 a customary mileage rates for use in 2011 (Notice 2010-88). The discretionary customary mileage rates can be used by taxpayers to calculate a deductible costs of handling an automobile.

For business use of an vehicle after Dec 31, 2010, a rate is 51 cents a mile; for medical or relocating expenses, 19 cents a mile; and for services to free organizations, 14 cents a mile. For taxation year 2010, a rates were 50 cents, 16.5 cents and 14 cents, respectively.

Rather than regulating a customary mileage rates, taxpayers might instead use their tangible costs, if they say adequate annals and can justify their expenses. In Rev. Proc. 2010-51, also released Dec 3, a IRS provides a manners for substantiating these amounts.

The notice also gives a volume taxpayers contingency use in calculating reductions to basement for debasement taken underneath a business customary mileage rate (22 cents a mile in 2011) and a limit customary vehicle cost that might be used in computing a stipend underneath a bound and non-static rate devise ($26,900 for automobiles and $28,200 for trucks and vans).

The IRS also announced that it will stop arising an annual income procession to refurbish a customary mileage rates and will instead “publish modifications as required” in a apart notice. Rev. Proc. 2010-51 will sojourn in outcome until superseded by after guidance.

Rev. Proc. 2010-51 prohibits a taxpayer from regulating a business customary mileage rate to discriminate a deductible losses of 5 or some-more automobiles a taxpayer owns or leases and uses simultaneously. The IRS has requested comments on this issue. Comments should be done by Mar 31, 2011, and can be sent to Notice.Comments@irscounsel.treas.gov, with Notice 2010-88 in a theme line.

About Emil Estafanous, CPA
Certified Public Accountant (CPA) Tax Professional committed in representing taxpayers and resolving their tax problems.

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