2013 Mileage Rates

New Mileage Rates for 2013
PFT_13QTR1_02.jpgIf you drive a car, truck or van for work, you’ll want to make sure you know the standard mileage rates that the Internal Revenue Service (IRS) has set for 2013.

These mileage rates are used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes. So when it comes to filing your taxes this time next year, you’ll need to know these numbers!

As of January 1, 2013, the standard mileage rates are as follows:

  • Businesses = 56.5 cents per mile driven (a one cent increase from 2012)
  • Medical or moving = 24 cents per mile driven (a one cent increase from 2012)
  • Charitable organizations = 14 cents per mile driven (unchanged from 2012)

Here are a few important things to bear in mind:

Although the IRS provides the standard mileage rate for ease and convenience, you’re not required to use it. If you prefer, you can calculate the actual costs of using your vehicle instead of using the standard mileage rates.

Taxpayers cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.

No more than four vehicles (simultaneously) can use the business standard mileage rate.

You can learn more about some additional requirements regarding the abovementioned standard mileage rates in Notice 2012-72 on the IRS website. As always, if you have any additional questions contact the IRS or consult with your CPA.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s