IRS Issued Notice on 2012 Standard Mileage Rates

Have you known that IRS has just issued notice on the 2012 standard mileage rates? Incase that you haven’t noticed just yet, here is the summary of the notice.

Basically, taxpayers have to use the new standard, effective on or after the January 1st 2012, to compute the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes.

Here are the 2012 standard mileage rates:

[-]. The standard mileage rate for transportation or travel expenses is 55.5 cents per mile for all miles of business use (business standard mileage rate).

[-]. The standard mileage rate is 14 cents per mile for use of an automobile in rendering gratuitous services to a charitable organization under §170.

[-]. The standard mileage rate is 23 cents per mile for use of an automobile (1) for medical care described in § 213, or (2) as part of a move for which the expenses are deductible under §217.

The notice also provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate. For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is:

• 21 cents per mile for 2008 and 2009;
• 23 cents per mile for 2010;
• 22 cents per mile for 2011; and
• 23 cents per mile for 2012

What is the maximum standard automobile cost? For purposes of computing the allowance under a fixed and variable rate plan, the standard automobile cost may not exceed $28,000 for automobiles (excluding trucks and vans) or $29,300 for trucks and vans.

Related articles:

1. New Standard Mileage Rates For 2010
2. New Income Tax Rate Tables 2012, Inflation Adjustment
3. New 2012 Pension Plans Dollar Limitation
4. Overpayment Notice – Request To Submit Reimbursement
5. How To Report Effect of Tax Status and Rates Changes