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Optional Mileage Rate Increased for 2001

Please note: This item is from our archives and was published in 2001. It is provided for historical reference. The content may be out of date and links may no longer function.

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According to the IRS, if you own or lease an automobile used in your trade, business or profession, the new optional standard mileage rate is 34.5 cents per business mile, up from 32.5 cents in 2000. The mileage allowance is in lieu of a separate deduction for lease payments, depreciation, maintenance, repairs, gas, oil, insurance, tires, and license and registration fees. However, parking and tolls related to business purposes can be deducted in addition to the optional rate. The 34.5-cent rate includes a depreciation component (15 cents) that reduces the adjusted basis of the auto for future gain and loss calculations.

The rate for charitable use of an automobile in 2001 remains at 14 cents per mile, while the rate for using an automobile for medical or moving purposes is 12 cents per mile, up from 10 cents last year (revenue procedure 2000-48, IRB 2000-49).