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...

IRS revokes group’s tax exemption over anti-Clinton statementsGregory Korte of the USA Today reported on Monday that the IRS has revoked the tax-exempt status of a conservative-aligned charity, the Patrick Henry Center...
Clawback policies vary by company, industry: PwCAccording to a report issued to clients by PwC on April 17, companies have instituted a wide range of so-called clawback policies – with no two exactly alike – in...
President Obama squeezed under the bar for the highest marginal tax rate on the federal income tax return he recently filed for 2013. But the Commander in Chief, who filed a joint return, couldn't dodge the new 3.8...

Upcoming CPE Webinars

Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
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.
Apr 30
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.
May 1
This material focuses on the principles of accounting for non-profit organizations’ expenses. It will include discussions of functional expense categories, accounting for functional expenses and allocations of joint costs.