The IRS has announced the optional standard mileage rates for 2012 for use in computing the deductible costs of operating a passenger automobile for business, charitable, medical, or moving expense purposes.

Effective January 1, 2012, the standard mileage rates are as follows:

• Business use of auto: 55.5 cents per mile may be deducted if an auto is used for business purposes
• Charitable use of auto: 14 cents per mile may be deducted if an auto is used to provide services to a charitable organization
• Medical use of auto: 23 cents per mile may be deducted if an auto is used to obtain medical care (or for other deductible medical reasons)
• Moving expense deduction: 23 cents per mile may be deducted if an auto is used to effect a work-related move to a new home

IR-2011-116 contains additional details.

The IRS releases inflation adjustments for 2012.

On October 20, 2011, the IRS released inflation adjustments for 2012 (Rev. Proc. 2011-52). This revenue procedure applies to taxable years beginning in 2012, and transactions or events occurring in calendar year 2012, where applicable.

The full text of these changes can be found in IRS Rev. Proc. 2011-52.

Registered Representatives of Equity Services, Inc. do not offer tax or legal advice. For advice concerning your own situation, please consult with your appropriate professional advisor.

The views and information contained herein have been prepared independently of the presenting Representative. It has been presented for informational purposes only and should not be construed as investment advice.