IRS Mileage Rate to Increase Next Year
The Internal Revenue Service (IRS) said the optional standard rate for business use of a car will increase to 36.5 cents per mile starting Jan. 1, 2002, rising nearly 6 percent from 34.5 cents this year, the Wall Street Journal reported.
In 2000, the rate was 32.5 cents per mile. The rate is used to calculate tax deductions for business use as an alternative to deducting actual costs.
The standard rate for a car used for medical reasons will increase to 13 cents per mile next year, up from 12 cents this year.
The IRS said the mileage-rate increases are primarily due to increase of gas prices over the past year.
The standard rate for a car used to provide services to charities will remain 14 cents per mile, as set by law.