Following are federal mileage rates for the year 2012 as obtained from the official website www.irs.gov
IRS or the Internal Revenue Service has published and circulated new mileage rates for the year 2012, which are useful for calculating the operating cost of tax deductibles such as an automobile for a company or for therapeutic and aid organization’s use and others. These rates can be used for estimating the allowance for a fixed-and-variable rate plan or FAVR plan. As per the new mileage rates, travel expense of fifty five and a half cents for every mile is charged as a standard rate for all means of businesses involving transportation. Further, the standard mileage may become 14 cents for every mile. In other cases, the cost per mile is 23 cents for every mile when the automobile is used for any medical services.
As per the maximum standard mileage cost rates are concerned, FAVR plan allows cost not to exceed the slab of $28,000 for light machines and may exceed up to $29,300 for heavy vehicles such as trucks, vans and others. Further, these rates will be officially applicable from the onset of 2012 year, which is from 1st of January, 2012. Thus, it is quite clear that new rates are welcoming, as they remain the same to their previous rates amended in the month of July 2011.
Many are aware that amended rates issued in July 2011 were reduced from the then rates by 0.5 cents for every mile traveled. However, every taxpayer has options to calculate their actual transport costs using the vehicles they own than using standard mileage cost rates. In addition, one must note that mileage rates are not used for calculating four vehicles simultaneously.
In case, readers are interested in knowing the breakdown or any additional details on the mileage rates, they may refer to the official website as given above. In fact, it is easy to calculate your own tax and filling them before time if you happen to take real interest in doing so.