Business Mileage Rate Unchanged for 2012

The business usage mileage rate will remain at 55.5¢ per mile for business travel after 2011. That is, unchanged from the July 1, 2011 mid-year adjustment. This rate can also be used by employers to reimburse tax-free under an accountable plan employees who supply their own autos for business use, and to value personal use of certain low-cost employer-provided vehicles. The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense will decrease to 23¢ per mile.

Please let us know if you have any questions regarding the business mileage rate or your accountability plan.

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