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...
The IRS cautions freelancers and other self-employed individuals to stay on top of the deadlines for filing federal tax returns and the due dates for making payments. Miss just one, says the IRS, and it might exact a sizable...
Bipartisan Cooperation on Tax Refund FraudAs noted in Politico, Senators Wyden and Hatch have introduced a tax refund fraud bill. According to a summary from Senator Hatch's office, the bill would enhance "the...
Camp Hopes Estate Tax Will Be on Its Way OutAn article in Bloomberg said that Republicans are considering voting this year to repeal the U.S. estate tax, according to House Ways and Means Chairman Dave Camp (R.-Mich.). He...
Upcoming CPE Webinars
FRF for SMEs Series--Measurement and Disclosure Principles for various Consolidations and Business Combinations, Part 4B
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
In this session we'll review best practices for how to generate interest in your firm’s services.
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.