n-10-88.pdf

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Part III - Administrative, Procedural, and Miscellaneous

2011 Standard Mileage Rates

Notice 2010-88

SECTION 1. PURPOSE
This notice provides the 2011 standard mileage rates for taxpayers to use in
computing the deductible costs of operating an automobile for business, charitable,
medical, or moving expense purposes. This notice also provides the amount taxpayers
must use in calculating reductions to basis for depreciation taken under the business
standard mileage rate, and the maximum standard automobile cost that may be used in
computing the allowance under a fixed and variable rate (FAVR) plan.
Further, this notice requests comments from the public concerning whether
taxpayers should be permitted to use the business standard mileage rate for
automobiles used in fleet operations.
SECTION 2. BACKGROUND
Rev. Proc. 2010-51 provides rules for computing the deductible costs of
operating an automobile for business, charitable, medical, or moving expense purposes,
and for substantiating, under § 274(d) of the Internal Revenue Code and § 1.274-5 of
the Income Tax Regulations, the amount of ordinary and necessary business expenses
of local transportation or travel away from home. Taxpayers using the standard mileage
rates must comply with Rev. Proc. 2010-51.

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An independent contractor conducts an annual study for the Internal Revenue
Service of the fixed and variable costs of operating an automobile to determine the
standard mileage rates for business, medical, and moving use reflected in this notice.
The standard mileage rate for charitable use is set by § 170(i).
SECTION 2. STANDARD MILEAGE RATES
The standard mileage rate for transportation or travel expenses is 51 cents per
mile for all miles of business use (business standard mileage rate). See section 4 of
Rev. Proc. 2010-51.
The standard mileage rate is 14 cents per mile for use of an automobile in
rendering gratuitous services to a charitable organization under § 170 (charitable
standard mileage rate). See section 5 of Rev. Proc. 2010-51.
The standard mileage rate is 19 cents per mile for use of an automobile (1) for
medical care described in § 213, or (2) as part of a move for which the expenses are
deductible under § 217 (medical and moving standard mileage rate). See section 5 of
Rev. Proc. 2010-51.
SECTION 3. BASIS REDUCTION AMOUNT
For automobiles a taxpayer uses for business purposes, the portion of the
standard mileage rate treated as depreciation is 19 cents per mile for 2007, 21 cents
per mile for 2008 and 2009, 23 cents per mile for 2010, and 22 cents per mile for 2011.
See section 4.04 of Rev. Proc. 2010-51.
SECTION 4. MAXIMUM STANDARD AUTOMOBILE COST

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For purposes of computing the allowance under a FAVR plan, the standard
automobile cost may not exceed $26,900 for automobiles (excluding trucks and vans) or
$28,200 for trucks and vans. See section 6.02(6) of Rev. Proc. 2010-51.
SECTION 5. COMMENTS REQUESTED
The Internal Revenue Service is evaluating the need for the limitation in section
4.05(1) of Rev. Proc. 2010-51 that prohibits a taxpayer from using the business
standard mileage rate to compute the deductible expenses of five or more automobiles
a taxpayer owns or leases and uses simultaneously (such as in fleet operations), and
requests public comments on this issue. Comments should be submitted by March 31,
2011, to: Internal Revenue Service, CC:PA:LDP:PR (Notice 2010-88), Room 5203,
P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Comments also may be
hand delivered between the hours of 8:00 a.m. and 4:00 p.m. Monday to Friday to
CC:PA:LDP:PR (Notice 2010-88), Courier's Desk, Internal Revenue Service, 1111
Constitution Avenue NW, Washington, D.C. Alternatively, comments may be
transmitted electronically to Notice.Comments@irscounsel.treas.gov
, indicating Notice
2010-88 in the subject line. All comments will be available for public inspection and
copying.
EFFECTIVE DATE
This notice is effective for (1) deductible transportation expenses paid or incurred
on or after January 1, 2011, and (2) mileage allowances or reimbursements paid to an
employee or to a charitable volunteer (a) on or after January 1, 2011, and (b) for
transportation expenses the employee or charitable volunteer pays or incurs on or after
January 1, 2011.

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DRAFTING INFORMATION
The principal author of this notice is Bernard P. Harvey of the Office of Associate
Chief Counsel (Income Tax and Accounting). For further information on this notice
contact Bernard P. Harvey on (202) 622-4930 (not a toll-free call).