Tuesday, December 4, 2012

IRS Announces 2013 Standard Mileage Rates

The IRS has issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

 Beginning January 1, 2013, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
  • 56.5 cents per mile for business miles driven
  • 24 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations.
The rate for business miles driven during 2013 increases one cent from the 2012 rate. The medical and moving rate is also up one cent per mile from the 2012 rate.
 
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.
 
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

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