written by Melinda Thurman
The Internal Revenue Service has released the standard mileage rates for the year 2013. The standard mileage rates have increased by 1 cent per mile for 2013 from the 2012 rates. These new mileage rates need be used when calculating the deductible costs of operating an automobile for business, charitable, medical or moving purposes that are owned or leased and for determining the reimbursed amount for these expenses.
Effective on January 1, 2013, the standard mileage rate for the use of a car, including the use of a van, pickup or panel truck, will be:
- 56.5 cents per mile for business miles driven
- 24 cents per mile for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
Taxpayers 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 other than straight-line for the automobiles estimated useful life or claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles in use simultaneously, such as in fleet operations.
Please contact us today at 417-881-0145 with any questions about this standard mileage rate increase.