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IRS increases mileage deduction for mobile veterinary practices, other businesses
Washington, D.C. ? The Internal Revenue Service (IRS) upped the mileage rate deduction to 55.5 cents for the last six months of the year.
Washington, D.C. –
The Internal Revenue Service (IRS) upped the mileage rate deduction to 55.5 cents for the last six months of the year.
The IRS made the change to better reflect escalating gas prices. The change will impact veterinarians since many veterinarians use their vehicles as part their equine, food-animal or mobile veterinary practices.
"The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011," IRS officials said in a statement today.The new rate jumped 4.5 cents per mile from the 51-cent rate per mile set for the first six months of the year.
"This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices," says IRS Commissioner Doug Shulman. "We are taking this step so the reimbursement rate will be fair to taxpayers."
While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using theses standard mileage rates, IRS says.
