If you choose to use the standard mileage rate for business use of car during 2011, here is an important announcement for you. The IRS has issued a new rate for deduction for the second half of 2011. The rate for the second half (July 1, 2011 - December 31, 2011) is 55.5 cents per mile. For the first six months of 2011 (Jan 1, 2011 - June 30, 2011) the rate was 51 cents per mile.
So, please note that your mileage claim in your tax return will now have two different rates for the year 2011 - a different rate for the first six months and a different rate for the last six months. That adds a little bit of missing complication in our tax returns for 2011.
The announcement of IRS is here for you to read and enjoy http://www.irs.gov/newsroom/article/0,,id=240903,00.html
