IRS Announces New Mileage Rates
The Internal Revenue Service announced Thursday the optional standard mileage rates to use for 2001 in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.
The amounts for the various deductible costs for use of a car will be effective January 1, 2001 and are as follows:
The primary reason for the mileage rate increases is due to the jump in gasoline prices.
The standard mileage rates for business, medical and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile.
An independent contractor conducted the study on behalf of the IRS. The charitable standard mileage rate is provided by law.
Revenue Procedure 2000-48 was released Thursday to formally announce these standard mileage rates. It contains additional information on these rates and it will appear in Internal Revenue Bulletin 2000-49 dated December 4, 2000.
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