2012 MILEAGE RATES

We receive a number of calls regarding the standard mileage rates taxpayers can use. The IRS has released amounts for use in 2012 (Notice 2012-1).

For business use of an automobile remains at 55½ cents per mile. For medical or moving expenses, it is 23 cents per mile (a half-cent decrease from the second half of 2011). For services to charitable organizations, the rate (which is set by statute) is 14 cents per mile.
Rather than using the standard mileage rates, taxpayers may instead use their actual costs if they maintain adequate records and can substantiate their expenses. The rules for substantiating these amounts appear in Rev. Proc. 2010-51.

For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 23 cents per mile for 2012 (it was 22 cents per mile for 2011).

As always, if you have questions please feel free to call us.

Posted on February 10, 2012 at 3:18 pm

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Categories: Business Tax, Federal Tax Law, Individual Tax
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Before founding Roberts & Associates in 1988, Dave Roberts worked for the International accounting firm KPMG in the tax department for several years. In addition, he worked as international tax manager for a publicly held high technology corporation, after which he taught at the college level for five years. Dave’s practice focus is the taxation of small and closely held businesses and coordination of tax issues between owners and their business. He is recognized for his experience in Partnerships, LLC’s, and S Corporation taxation. His areas of expertise include manufacturing, construction and real estate development, mergers and acquisitions, and medical devices and OTC products. Dave graduated from the University of Utah where he obtained a Master’s of Professional Accountancy degree.

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