United States: Update on 2012 Standard Mileage Rates
On December 9, 2011, the U.S. Internal Revenue Service (IRS) released an advance copy of Notice 2012-1 providing the standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, medical, moving, or charitable purposes.1 Most rates, including business miles, remain the same as provided in Announcement 2011-40 which set the rates beginning July 1, 2011.
| Beginning January 1, 2012, the standard mileage rates will be: Purpose | Rate July 1 – December 31, 2011 | Rates beginning January 1, 2012 |
| Business | 55.5 cents per mile | 55.5 cents per mile |
| Medical and Moving | 23.5 cents per mile | 23 cents per mile* |
| Charitable | 14 cents per mile | 14 cents per mile |
*The medical and moving rate will be reduce by 0.5 cents per mile.
The mileage rate for charitable miles is set by law and remains at 14 cents per mile. 2
Notice 2012-1 also provides that for an automobile the taxpayer owns and uses for business purposes in 2012, 23 cents of the 55.5 cents per mile are treated as a depreciation expense.
Source: KPMG