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Clergy Tax Facts |
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In response to rising gasoline prices, the IRS has raised the standard mileage rate for ministry and business use of an automobile from 51 cents per mile to 55½ per mile, effective July 1 (Announcement 2011-40). The medical and moving standard mileage rate is increasing to 23½ per mile, also on July 1.
The new optional standard mileage rates will apply until superseded by future guidance and can be used by ministers to calculate the deductible costs of operating an automobile. Alternatively, ministers can instead use their actual costs, but must maintain adequate records and be able to substantiate their expenses.
The standard mileage rate for services to charitable organizations is set by statute at 14 cents per mile and remains unchanged.
The former rates announced in Notice 2010-88 (51 cents per mile for business use, 19 cents per mile for medical and moving expenses) continue to apply to expenses incurred before July 1, 2011.
The IRS typically sets its standard rate about a month before a new calendar year begins and then keeps it the same for the ensuing 12 months.
2011 Standard Mileage Rates
The Internal Revenue Service issued the 2011 standard mileage rates used to calculate the deductible costs of operating an automobile for ministry, business, charitable, medical or moving purposes. Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, or pickups ) are listed below.
Ministry |
Business |
Moving |
Medical |
Charitable |
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2011 per-mile rates |
51 cents |
51 cents |
19 cents |
19 cents |
14 cents |
2010 Standard Mileage Rates
The Internal Revenue Service issued the 2010 standard mileage rates used to calculate the deductible costs of operating an automobile for ministry, business, charitable, medical or moving purposes. Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, or pickups ) are listed below.
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The new rates for ministry, business, medical and moving purposes are slightly lower than rates for 2009 that were raised by a special adjustment in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2010.
The IRS commissions an annual study to set the standard mileage rate for business, medical and moving purposes, but the charitable purpose rate is set by law. Taxpayers cannot use the business standard mileage rate after using any depreciated method under the Modified Accelerated Cost Recovery System after claiming a Section 179 deduction for any vehicle used for hire or for more than four vehicles used simultaneously. For more information, see Revenue Procedure 2009-54.
IRS 2009 Standard Mileage Rates
The 2009 standard mileage rates used to calculate the deductible costs of operating an automobile for ministry, business, charitable, medical or moving purposes.
Beginning Jan. 1, 2009, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
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