The Internal Revenue Service today 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 on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 56.5 cents per mile for business miles driven - whole 1cent increase from 2012
- 24 cents per mile driven for medical or moving purposes - whole 1cent increase from 2012
- 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.
Taxpayers always have the option
of calculating 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. In
addition, the business standard mileage rate cannot be used for more
than four vehicles used simultaneously.
These and other requirements for a
taxpayer to use a standard mileage rate to calculate the amount of a
deductible business, moving, medical, or charitable expense are in Rev.
Proc. 2010-51. Notice 2012-72 contains the standard mileage rates, the
amount a taxpayer must use in calculating reductions to basis for
depreciation taken under the business standard mileage rate, and the
maximum standard automobile cost that a taxpayer may use in computing
the allowance under a fixed and variable rate plan.
If you have any questions, or would like more information about this topic, please feel free to contact us!
