WASHINGTON – The IRS is increasing the optional standard mileage rates for computing the deductible cost of operating an automobile for business purposes, and for determining the reimbursed amount of these expenses

The revised rate is 55.5 cents per mile for business expenses and will go into effect on July 1, 2011. This rate applies to deductible transportation expenses, to mileage allowances paid to an employee, and to transportation expenses paid or incurred by the employee.

This increase applies to business miles driven during the last six months of 2011. For business miles driven between Jan. 1 and June 30, 2011, the previous rate of 51 cents per mile applies.

Originally posted on Automotive Fleet