Maybe even more importantly than the rate itself is the recordkeeping requirements that goes along with it. It remains crucial to keep proper mileage data so that the deduction remains valid. Remember to regularly record such things as total miles for the year, mileage for each deductible use, including the times, dates and places visited. Talk with your accountant or tax preparer to see if actual cost works as another option. You will still be required to provide proper recordkeeping concerning the business use of your vehicle. Medical and moving mileage rates also increase from 19 cents per mile to 23.5 cent and have their own parameters of eligibility.
This increase is in response to the recent skyrocketing fuel charges. The Auto Club recently reported that in late May 2011, the average price for a gallon of regular fuel in California was $4.07, roughly a dollar more than a year ago. Californian's pay 69 cents per gallon in state and federal taxes on each gallon pumped. Prices have come down somewhat in the last month yet remain higher than the same time in 2010.