IR-2010-119: IRS ANNOUNCES 2011 STANDARD MILEAGE RATES
The Internal Revenue Service issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
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 (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2010-51 contains additional details regarding the standard mileage rates
For 2011 you must have accurate records inorder to be able to take the standard mileage Rate, and prove that you are in the Transportion Industry. If you are leased on to a compnay who requires your vehicle with an EXCLUSIVE USE OF VEHICLE WRITTEN INTO THE CONTRACT THEN THE STANDARD MILEAGE RATE CAN BE USED,
If you use the standard mileage rate you must prove each and every mile, and everyday that you are on the road inorder to take the Per Diem for that day.
Inorder to be in compliance with IRS rulings you may not give a beginning Mileage and an ending Mileage on you 2011 tax returns.
If you are audited and the mileage deduction is disallowed you are going to have to provide proof of each load
For the Per Diem you must have a copy of the bill of laded or a Pick up and delivery form showing the Shipper/Receiver and date of pick up and delivery.
You also must keep an accurate record of each mile that you use by entering on the same load. the starting mileage from point of recieving the load for pick up and the ending mileage after you Unload, and go to the nearest T/S or point of resting overnight. that is the mileage for that load
I have available to you a Per diem and Mileage Proof sheet for each load, Please e-mail me requesting one at [email protected]
Franklin Katz, RTP, ATP ,PA, PB,
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
The Internal Revenue Service issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 51 cents per mile for business miles driven
- 19 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
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 (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2010-51 contains additional details regarding the standard mileage rates
For 2011 you must have accurate records inorder to be able to take the standard mileage Rate, and prove that you are in the Transportion Industry. If you are leased on to a compnay who requires your vehicle with an EXCLUSIVE USE OF VEHICLE WRITTEN INTO THE CONTRACT THEN THE STANDARD MILEAGE RATE CAN BE USED,
If you use the standard mileage rate you must prove each and every mile, and everyday that you are on the road inorder to take the Per Diem for that day.
Inorder to be in compliance with IRS rulings you may not give a beginning Mileage and an ending Mileage on you 2011 tax returns.
If you are audited and the mileage deduction is disallowed you are going to have to provide proof of each load
For the Per Diem you must have a copy of the bill of laded or a Pick up and delivery form showing the Shipper/Receiver and date of pick up and delivery.
You also must keep an accurate record of each mile that you use by entering on the same load. the starting mileage from point of recieving the load for pick up and the ending mileage after you Unload, and go to the nearest T/S or point of resting overnight. that is the mileage for that load
I have available to you a Per diem and Mileage Proof sheet for each load, Please e-mail me requesting one at [email protected]
Franklin Katz, RTP, ATP ,PA, PB,
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.