On December 6, 2013 the Internal Revenue Service released the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
As of January 1, 2014, standard rates for use of a car, van, pickup truck or panel truck will be:
- 56 cents per mile for business miles driven – a decrease of 0.5 cent from 2013
- 23.5 cents per mile driven for medical or moving purposes – a decrease of 0.5 cent from 2013
- 14 cents per mile driven in service of charitable organizations – no change from the 2013 statute
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rate.
Complete details about the 2014 standard mileage rates may be found in IRS Notice 2013-80
Taxation and compliance issues regarding the standard mileage rates can be complex. If you would like to benefit from our expertise in these areas or if you have further questions on this Advisory, do not hesitate to contact our Tax and Accounting Specialists, or call us at 1-800-239-1474.