The Internal Revenue Service (IRS) Dec. 9 announced the 2012 optional standard mileage rate to use for computing the deductible costs of operating an automobile for business will be 55.5 cents per mile.
The new rate will go into effect beginning Jan. 1, 2012, and will apply to the use of cars, vans, pickup trucks or panel trucks.
The standard mileage rates for business purposes are based on an annual study of the fixed and variable costs of operating an automobile. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction for that vehicle. The business standard mileage rate cannot be used for more than four vehicles used simultaneously.
For more information on the standard mileage rates, visit the IRS website.