For taxpayers who are currently planning for the upcoming year, the Internal Revenue Service has announced the mileage rates for 2011.
*The business mileage rate will be 51 cents per mile. This rate includes automobiles used for hire, such as taxicabs, but cannot be used for fleet vehicles.
*The medical and moving expense mileage rate will be 19 cents per mile. For the moving expense to be deductible, the distance between the former residence and new workplace must be at least 35 miles more than the distance between the former residence and the former principal place of work.
* Lastly, the mileage rate for charitable purposes will be 14 cents per mile.
For companies that provide employees with a company vehicle, do not forget to add the value of the 2010 personal use of the company’s vehicle to your employee’s paycheck prior to year-end. If you need help calculating the value of the personal use, please contact us.