1-19-12 2012 Standard Mileage Rates

2012 Standard Mileage Rates

The Internal Revenue Service has issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.


Beginning January 1, 2012 the standard mileage rates will be:


• 55.5 cents per mile for business miles driven (Unchanged)
• 23 cents per mile driven for medical or moving purposes (Changed)
• 14 cents per mile driven in service of charitable organizations (Changed)


The rate for the business miles is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.


Taxpayers always have the option of calculating actual costs of using their vehicle instead of using the standard mileage rates.


A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method. In addition, the business standard mileage rate cannot be used for more than four vehicles use simultaneously. (1)

 

 

(1) IRS. (n.d.). Internal Revenue Service. Retrieved from 2012 Mileage Rates: www.irs.gov

 
 
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