2014 and 2013 Standard IRS Mileage Rates For Business, Medical, Moving and Charity – Tax Deduction Rules

0 comments

[Updated with 2014 IRS rates]  2014 optional standard mileage rates used to calculate the deductible costs of operating a car (includes vans, pickups or panel trucks) for business, charitable, medical or moving purposes are shown in the table below. Rates have dropped from 2013 levels due to the lower price of gas and cost of living increase. These are effective from Jan. 1, 2014,

Year
Business Related Driving
Medical or Moving Purposes
Charitable Service Driving
201151c19c14c
201255.5c23c14c
201356.5c24c14c
201456c23.5c14c
2015 available in Nov 2014 source : IRS.gov

The business, medical, and moving expense rates decrease one-half cent from the 2013 rates. The charitable rate is based on statute.

The IRS issues these optional standard mileage rates to enable business’ and individuals to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

If this information is useful to you, consider subscribing (free) via RSS or Email to get the latest updates.

[Updated with official 2013 IRS rates] The IRS has released its 2013 standard mileage rates which are up 1 cent per mile for business, medical and moving purposes. Charitable driving deduction mileage rates remain at 14 cents. Details are shown in the table above. Units are in cents (c) per mile.

__________

[Updated for 2012 rates] -The IRS has released 2012 standard mileage rates (effective Jan 1.) for business, charitable, medical or moving. Rates reflect a slight increases over initial 2011 levels, but basically flat from the mid-2011 increase.

• 55.5 cents per mile for business miles driven;
• 23 cents per mile driven for medical or moving purposes (0.5c drop); and
• 14 cents per mile driven in service of charitable organizations.

_____________

[Update July 2011] - Higher gas prices have prompted the IRS to make an unscheduled midyear increase to the standard mileage rate discussed below. The rate will jump to 55.5 cents per mile for travel in July through December, an increase of 4.5 cents from the rate of 51 cents a mile for driving used in January through June.

The rate for driving for medical purposes or if required for a job move rose to 23.5 cents per mile for the second half of the year from 19 cents in the first six months of 2011.

The mileage rate for deducting driving costs related to charitable work is 14 cents a mile, as it has been for years.

_______

The IRS today issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The rates have marginally increased over 2010 (see previous update below).  Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
* 51 cents per mile for business miles driven
* 19 cents per mile driven for medical or moving purposes
* 14 cents per mile driven in service of charitable organizations

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study.

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. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

__________

[Previous Update - 2010 Mileage Rate] The IRS today issued the 2010 standard mileage rates used to calculate the tax deductible costs of operating an automobile for business, charitable, medical or moving purposes. Given all the new car stimulus deductions and credits, many folks and business would be claiming some of these deductions when filing their 2009 tax returns. The new rates for business, medical and moving purposes are slightly lower than last year’s, which reflect generally lower transportation costs compared to a year ago (lower gas prices). Also, don’t forget that, a taxpayer is not allowed to deduct any portion of the cost of operating an automobile attributable to personal use.

Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 50 cents per mile for business miles driven (vs. 55 cents in 2009)

• 16.5 cents per mile driven for medical or moving purposes (vs. 24 cents per driven mile in 2009)

• 14 cents per mile driven in service of charitable organizations (the same as 2009)

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study.

A taxpayer may deduct the ordinary and necessary expenses the taxpayer pays or incurs during the taxable year in carrying on any trade or business. For example, I claim my transportation expenses when going to see a client or visit a place to do some research. An employee or self-employed individual may deduct the cost of operating an automobile to the extent that it is used in a trade or business. 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 or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Bookmark and Share

Liked what you read? Then stay connected and get the latest articles via RSS, Email or Facebook

{ 0 comments… add one now }

Leave a Comment


5 + 2 =

Previous post:

Next post:

Disclaimer: The information contained on Saving to Invest (this site) is for general information purposes only and does not constitute factual or professional financial advice. In accordance with FTC guidelines, we disclose that we may have a financial relationship with some of the merchants/companies mentioned on this website. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers. Refer to the Privacy Policy and Terms of Use for more information