IRS Announces New Mileage Rates for 2002

The standard rate of mileage for business use of a vehicle is set to increase again, effective January 1, 2002. The current rate is 34.5 cents per mile. For 2002, the new rate for business mileage will increase two cents to 36.5 cents per mile.

The mileage rate for medical and moving expenses is also set to increase. The following changes will go into effect on January 1:

  • Business mileage rate increases from 34.5 cents per mile to 36.5 cents per mile.
  • Deductible mileage rate for medical expenses increases from 12 cents per mile to 13 cents per mile.
  • Deductible mileage rate for moving expenses increases from 12 cents per mile to 13 cents per mile.
  • Deductible mileage rate for charitable services remains the same at 14 cents per mile.

The rate increases stem from the rise in gasoline costs over the past year.

This information is being reported in Revenue Procedure 2001-54.

You may like these other stories...

School tax breaks get House support as Democrats objectRichard Rubin of Bloomberg reported that the House of Representatives on Thursday voted to expand and simplify tax breaks for education as Republicans continue to pass...
Many senior US tax professionals believe that a streamlined audit process will be the top benefit resulting from the IRS Transfer Pricing Audit Roadmap, a new toolkit organized around a notional 24-month audit timeline,...
Tax accounting to be simplified for money-market fundsThe US Securities and Exchange Commission (SEC) voted 3-2 on Wednesday for sweeping changes to institutional money-market funds, Emily Chasan, senior editor of...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.