IRS Increases Mileage Rate to 55.5 Cents per Mile.  Quick note for small business owners and others who compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs.  The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011.

If you have specific questions about the tax implications, make sure to talk to your accountant. However, for those of us that track mileage this is certainly a positive. If you want to read the actual IRS bulletin, this is a good one to choose. Unlike many IRS publications, this is actually pretty short and readable so click here.  Here is a copy of the chart showing the other changes: