Search

Sandusky, Ohio Office
422 West Market Street
Sandusky, OH 44870
419-625-4942
866-293-2727
FAX: 419-625-7120
MAP

Norwalk, Ohio Office
257 Benedict Avenue, Building D
Norwalk, OH 44857
419-668-2552
800-860-0152
FAX: 419-663-3637
MAP

Monday–Friday: 8 am – 5 pm
   
Fridays from May 1 through
Labor Day we close at noon.

PNCPA e-Newsletter
Keep up-to-date! Get the
latest news and updates in
the tax world that affect you
and your business.

  

Click here to sign up for the
FREE PNCPA e-newsletter!

CPAs Net

Minimize

2011 Standard Mileage Rates

December 08, 2010
Payne, Nickles & Company



The IRS released on Friday the standard mileage rates for use in 2011 (Notice 2010-88). The optional standard mileage rates can be used by taxpayers to calculate the deductible costs of operating an automobile.

For business use of an automobile after Dec. 31, 2010, the rate is 51 cents a mile; for medical or moving expenses, 19 cents a mile; and for services to charitable organizations, 14 cents a mile. For tax year 2010, the rates were 50 cents, 16.5 cents and 14 cents, respectively.

Rather than using the standard mileage rates, taxpayers may instead use their actual costs, if they maintain adequate records and can substantiate their expenses. In Revenue Procedure 2010-51, also issued Friday, the IRS provides the rules for substantiating these amounts.

The notice also gives the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate (22 cents a mile in 2011) and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate plan ($26,900 for automobiles and $28,200 for trucks and vans).

The IRS also announced that it will stop issuing an annual revenue procedure to update the standard mileage rates and will instead “publish modifications as required” in a separate notice. Rev. Proc. 2010-51 will remain in effect until superseded by later guidance.

Revenue Procedure 2010-51 prohibits a taxpayer from using the business standard mileage rate to compute the deductible expenses of five or more automobiles a taxpayer owns or leases and uses simultaneously. The IRS has requested comments on this issue. Comments should be made by March 31, 2011, and can be sent to Notice.Comments@irscounsel.treas.gov, with Notice 2010-88 in the subject line.


PAYNE, NICKLES & COMPANY

Treasury Circular 230 Disclosure
Unless expressly stated otherwise, any federal tax advice contained in this communication is not intended or written to be used, and cannot be used or relied upon, for the purpose of avoiding penalties under the Internal Revenue Code, or for promoting, marketing or recommending any transaction or matter addressed herein.