Standard Mileage Rates Down for 2014
by Terri Eyden on
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."
Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
2 weeks 2 days ago by claudilocks