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."
You may like these other stories...
IRS audits less than 1 percent of big partnershipsAccording to an April 17 report from the Government Accountability Office (GAO), the IRS audits fewer than 1 percent of large business partnerships, Stephen Ohlemacher of the...
Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
Upcoming CPE Webinars
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.