Beginning on Jan. 1, 2014, the standard mileage rates for the use - TopicsExpress



          

Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) used for business, charitable, medical or moving purposes is: • 56 cents per mile for business miles driven •23.5 cents per mile driven for medical or moving purposes •14 cents per mile driven in service of charitable organizations The business, medical, and moving expense rates decrease one-half cent from the 2013 rates. The charitable rate remains unchanged from 2013 and is based on statute. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, whereas the rate for medical and moving purposes is based on the variable costs. As always, taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates; however, a taxpayer may not 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. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. Let us know if you have any questions about standard mileage rates and which driving activities you should keep track of as tax year 2014 begins
Posted on: Thu, 16 Jan 2014 01:57:28 +0000

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