IRS increases gas mileage deduction in midyear | Business - The News Tribune

IRS increases gas mileage deduction in midyear | Business - The News Tribune: "RS increases gas mileage deduction in midyear

WASHINGTON — The Internal Revenue Service is increasing the tax deduction motorists can take for using private vehicles for business, a rare midyear move sparked by high gas prices.
FACEBOOK ACTIVITY
STEPHEN OHLEMACHER; The Associated Press
Published: 06/26/11 6:46 am
0 comments


WASHINGTON — The Internal Revenue Service is increasing the tax deduction motorists can take for using private vehicles for business, a rare midyear move sparked by high gas prices.

Starting July 1, motorists who use their personal vehicles for business will be able to deduct 551/2 cents a mile from their taxable income, the agency announced Thursday. That’s an increase of 41/2 cents from the first six months of the year.

The rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. Workers who receive the reimbursement don’t have to report it as income, as long as the payments don’t exceed the IRS benchmark.

- Sent using Google Toolbar"