IRS Raises Gas Mileage Tax Deduction

By
Real Estate Agent with Coldwell Banker Apex, Realtors

IRS Raises Gas Mileage Tax Deduction


In a rare midyear move, the Internal Revenue Service is increasing the tax deduction you can take for using personal vehicles for business.

On July 1, if you use your personal vehicle for business, you’ll be able to deduct 55 cents a mile from your taxable income. That marks a 4-cent increase from the beginning of this year.

While the IRS normally updates mileage rates once a year during the fall for the next calendar year, the tax agency decided to raise the gas mileage tax deduction earlier due to high gas prices. (The average gas price currently is $3.61 a gallon, which is up from $2.74 last year, according to AAA.)

"This year's increased gas prices are having a major impact on individual Americans,” IRS Commissioner Doug Shulman told USA Today. “The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices. We are taking this step so the reimbursement rate will be fair to taxpayers."

Source: “IRS Increases Gas Mileage Deduction at Midyear,” USA Today (June 23, 2011)

To read more about IRS Raises Gas Mileage Tax Deduction, go to www.IRS.gov 

Comments (3)

Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

That is good news. Thanks so much for sharing. SHould help my tax return a little bit.

Jun 26, 2011 03:39 AM
Kathy Toth
Ann Arbor Market Center Keller Williams - Ann Arbor, MI
Ann Arbor Real Estate Experts - Kathy Toth Team

Right, that means my huband gets a raise since he does all the driving!

Jun 26, 2011 03:39 AM
Diane Lombardino
Keller Williams Realty of Jupiter - Palm Beach Gardens, FL

Thanks for the information!  We need a little break.  This market requires so many more showings since it is still a buyer's market and they want to see EVERYTHING within their specifications.  There was time when you could close a buyer with 4-5 showings..........oh!  the good ole days!!

Jun 26, 2011 04:02 AM