Because we want to make certain our clients don’t miss any of the reimbursements to which they are rightfully entitled, we wanted to pass along this information from the IRS: As a way to help individuals deal with the increased costs of gasoline, the IRS has adjusted the mileage rate for business-related travel. This increase is a boon to self-employed individuals who spend a lot of time behind the wheel.

This mid-year adjustment to the standard mileage rate is a rare move by the IRS. The increase took effect July 1, 2011, and will be in place until at least December 31, 2011. The new reimbursement rates are 55.5 cents per business mile traveled and 23.5 cents for miles traveled for medical and moving. This is an increase of 4 cents per mile over the January through June 2011 rate.

To qualify for the business mileage reimbursement, you need to diligently track the miles driven. To properly do this, at the beginning of your fiscal year write down your odometer reading. Throughout the course of the year, every time you drive for business purposes you should write down your beginning and ending mileage, the date of the travel, your destination and the purpose of the travel, i.e. client visit, sales call, seminar attendance, etc.

There are several ways to track your mileage including online tracking tools, apps for your smart phone, or you can simply track of the information in a notebook that you keep in your vehicle.

Pay yourself back every month or wait until year-end, it’s your choice. Just don’t miss this important business expense.

 

 

 

 

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