On December 9, 2011 the Internal Revenue Service disclosed the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
55.5 cents per mile for business miles driven
23 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. The instructions for taxpayers wishing to calculate the actual cost of using their vehicle, rather than using a standard mileage rate to calculate the amount, are described in Rev. Proc. 2010-51.
If this interests you, then you’ll also want guidance regarding Notice 2012-01, which contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
For further information, please contact Jean-Pierre Lavielle at (212) 599-3322, or at email@example.com