IRS Raises Mileage Deduction by About 8%

Effective July 1, 2011, the allowed mileage deduction and reimbursement rate is increased from 51 cents per mile to 55.5 cents. Don’t ask me why the IRS uses half cents for these rates, but they do.

This means you can use 51 cents for your miles incurred by June 30 and the new rate after that date. Most farmers take actual costs incurred and depreciate the pick-up, etc., but you may want to use the mileage rate for the incidental use of a spouse’s car for making bank runs and other minor farm uses during the year.

This is also the rate you can use to reimburse employees for the use of their auto or pick-up