Auto Mileage Rate For 2001

Due to the higher fuel prices, IRS has announced the standard rate for business miles will be 34.5 cents as of January 1, 2001. This is a two cent increase from the 32.5 cents for 2000 business miles. Companies that base their employee reimbursements on the IRS rate have penty of time to make the necessary changes.

Likewise, there will be a two cent increase in some of the other mileage deductions.

The standard mileage rate for use of a car for medical reasons will be 12 cents a mile. The 2000 rate is 10 cents a mile.

The standard mileage rate to use when computing deductible moving expenses will be 12 cents a mile. The 2000 rate is 10 cents a mile.

The standard mileage rate for the use of a car when giving services to a charitable organization remains at 14 cents a mile.

Again, this just illustrates the immense intellect of the IRS head honchos. They have been able to determine through their extensive research that vehicles cost less to operate for these other purposes than for business. Since my formal education in this area consists of Auto Shop in high school, where we never covered this aspect of auto science, I have to trust the IRS brainiacs to steer us in the right direction.

KMK


- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 11/17/2000 07:32:00 PM Send this post: