2011 Mileage Rates

Beginning on Jan. 1, 2011, the standard mileage rates are the following:

• 51 cents per mile for business miles driven (50 cents in 2010, 55 cents in 2009)
• 19 cents per mile driven for medical or moving purposes (16.5 in 2010, 24 in 2009)
• 14 cents per mile driven in service of charitable organizations (14 in both 2010 and 2009)

To calculate use of personal vehicle for tax purposes, you can use one of two methods: standard mileage rate or actual expenses. If you qualify for both, calculate the deduction under both methods to see which gives you a larger deduction.

Actual expenses consist of the following costs:

• Depreciation
• Lease payments
• Tires
• Insurance
• Registration fees
• Garage rent
• Parking fees
• Licenses
• Tags
• Repairs
• Gas and oil

The car expenses can also include parking fees and tolls under either method. Note: this does not include commuting expenses, these are never deductible.

Once you elect to claim actual expenses when you first begin using the car for business you cannot change to the standard rate deduction later.