Thursday, May 24, 2012

Mileage rates hold steady for 2012

The IRS has held the maximum allowable reimbursement rate for business mileage at 55.5 cents per mile for 2012. All businesses should take note of the mileage rate for the year.

In addition, employees should also take note, as you may be entitled to unreimbursed employee deductions if you incurred business mileage, but were not reimbursed at the maximum allowable rate for the year. A word of caution, the deductibility of these amounts are limited by a factor of overall income for the year, so not all people will have a deductible expense, plus all people whom would be better served by taking a standard deduction for the year, would not be entitled to a deduction for these amounts...

Also note that the medical and moving mileage rate decreased from 23.5 cents per mile at the end of  2011 to 23.0 cents per mile in 2012.

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