High Gas Prices Cause IRS To Increase Mileage Rate

The Internal Revenue Service has responded to the nationwide increase in gas prices by raising the mileage rate by 4.5 cents.  Starting July 1,  drivers will be able to deduct 55.5 cents per mile for the business-related travel they undertake in their private vehicle.  Generally, the IRS announces increases in the fall; however, just as in 2008, high gas prices have led the IRS to increase the mileage rate in the middle of the year.

Along with business-related travel, the mileage rate for medical and moving expenses has increased to 23.5 cents per mile – an increase from the 19 cent deduction previously accorded to drivers.  According to the Oil Price Information Service, gasoline consumed 9.5% of taxpayers’ median income in May of 2011, this is only slightly less than the 10.2% of consumers’ income gasoline consumed back in 2008.

Even if you haven’t deducted these costs in the past, many employers use the IRS mileage amount to determine how much to reimburse employees for their business related fuel costs.

The business mileage deduction is just one of many deductions available to taxpayers.  Let the attorneys at Kohler & Smith Co., LPA help you and your family at tax time – call (614) 888-4911 today.

Advertisements

About Kohler & Smith Co., LPA

We are a general practice law firm serving Ohio, Florida, and Pennsylvania. Since 1978, Kohler & Smith Co., LPA has provided representation for its clients' legal and tax matters. The attorneys at Kohler & Smith Co., LPA focus their practice on Estate Planning, Elder Law, Probate, Business/Corporate Matters, Real Estate, Taxation, Lottery Law, Receivership, and Civil Litigation.
This entry was posted in Business, Taxes and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s