New 2011 Mileage Rates Announced Today

Posted June 23rd, 2011 by Michele Knight, CPA and filed in Individual Taxes, Small Business Tax & Accounting

Good news for taxpayers, bad news for tax preparers…the IRS announced a new mileage rate to take effect July 1, 2011.  The rates will jump as follows:

Business Mileage – from 51 cents to 55.5 cents
Medical/Moving Mileage – from 19 cents to 24.5 cents
Charitable Mileage remains the same at 14 cents

These new rates refelct the increased gas prices this year,  but it means that small business owners ABSOLUTELY must track their mileage on a regular basis in order to properly classify their mileage and be able to take advantage of the increased mileage rates.