On December 9, the IRS announced the standard mileage rates for 2012 (Announcement 2012-1). Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.
The 2012 rates are:
Instead of using the standard mileage rates, taxpayers can use their actual costs but must maintain adequate records and be able to substantiate their expenses.
For automobiles used for business purposes, the portion of the business standard mileage rate treated as depreciation is 23 cents per mile for 2012, which is a one (1) cent increase from 2011 rates.
Please let us know if you have any questions.