IRS Announces 2012 Standard Mileage Rates

The Internal Revenue Service on December 9, 2011 issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes, according to a news release (IR-2011-116).

Beginning Jan. 1, 2012, the standard mileage rates for the use of a car, van, pickup or panel trucks, will be 55.5 cents per mile for business miles driven, which is unchanged since the July 1, 2011 update; 23 cents per mile driven for medical or moving purposes, down 0.5 cents per mile; and 14 cents per mile driven in service of charitable organizations, which remains unchanged. IRS said standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.