2012 IRS mileage rates set
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction for that vehicle, it says. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
There are few changes for the New Year in the “optional standard mileage rates” many people and businesses use on their tax returns, the Internal Revenue Service says.
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
The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1. The medical and moving rate has been reduced by 0.5 cents per mile.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, the IRS says. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
Taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates, the IRS says.