Standard Mileage Rates Down for 2014

By Jason Bramwell, Staff Writer
 
The IRS has issued the optional standard mileage rates for 2014, which are down one-half cent from this year's rates.
 
The optional standard mileage rates are used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
 
According to IRS Notice 2013-80, beginning on January 1, 2014, the standard mileage rates for the use of a car, van, pickup truck, or panel truck will be the following:
  • 56 cents per mile for business miles driven (down from 56.5 cents in 2013).
  • 23.5 cents per mile driven for medical or moving purposes (down from 24 cents in 2013).
  • 14 cents per mile driven in service of charitable organizations (remains the same from 2013; based on federal statute).
"An independent contractor conducts an annual study for the IRS of the fixed and variable costs of operating an automobile to determine the standard mileage rates for business, medical, and moving use reflected in [Notice 2013-80]," the IRS stated in the notice.
 
However, taxpayers may calculate the actual costs of using their vehicle rather than using the standard mileage rates.
 
"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," the IRS noted. "In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously."
 
Related article:
 

You may like these other stories...

A new government report on Monday found that the IRS may not be completing the required research steps in collecting delinquent taxes before considering the cases “not collectible.”The Treasury Inspector General...
The school year is off and running—have your start-up clients launched as well? It may make a big difference in tax status. If your clients can get their businesses up-and-running before the end of the year, they may...
Ernst & Young fiscal-year revenue rises 6% to $27.4 billionMichael Rapoport of the Wall Street Journal reported late Thursday that Ernst & Young's (EY) global revenue was $27.4 billion in its latest fiscal year,...

Already a member? log in here.

Upcoming CPE Webinars

Sep 30This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.