The IRS has released the standard mileage rates that taxpayers can optionally use to calculate the 2012 deductible costs of operating an automobile.
For business use of an automobile remains at 55½ cents per mile. For medical or moving expenses, the 2012 rate is 23 cents per mile (down a half-cent from the allowable rate for the second half of 2011). For mileage related to services for charitable organizations, the rate (which is set by statute) remains at 14 cents per mile.
When a taxpayer uses an automobile for business purposes, the portion of the 2012 standard mileage rate that can be treated as depreciation is 23 cents per mile (it was 22 cents per mile for 2011).
Keep in mind that instead of using standard mileage rates, taxpayers may instead use their actual costs if they maintain adequate records and can substantiate their expenses. Rev. Proc. 2010-51 has the rules for substantiating these amounts.
IRS Notice 2012-1
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