Standard Mileage for 2012 Released!

19 December 2011 / Uncategorized / Comments Off on Standard Mileage for 2012 Released!

The IRS on Friday released standard mileage rates for use in 2012 (Notice 2012-1). Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.

For business use of an automobile remains at 55½ cents per mile.

For medical or moving expenses, it is 23 cents per mile (a half-cent decrease from the second half of 2011).

For services to charitable organizations, the rate (which is set by statute) is 14 cents per mile.

Rather than using the standard mileage rates, taxpayers may instead use their actual costs if they maintain adequate records and can substantiate their expenses. The rules for substantiating these amounts appear in Rev. Proc. 2010-51.

As always, no matter which method you use to deduct your auto expenses, you must keep mileage logs to ensure that those deductions are able to withstand IRS scrutiny!  If you need some help in making this daunting task easier, please feel free to call us!

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