|If 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:
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.