The Internal Revenue Service has issued the 2014 standard mileage rates. These rates are used to calculate the deductible costs of operating an automobile for business, charitable, medical and moving purposes.
Beginning January 1, 2014, the standard mileage rate for the use of a car, van, pickup or panel truck will be:
56 cents per mile for business miles driven, which is a decrease of 1/2 of a cent from the 2013 rate.
23.5 cents per mile driven for medical or moving purposes, which is also a decrease of 1/2 of a cent from the 2013 rate.
14 cents per mile driven for service in a charitable organization, which didn’t change from 2013.
Taxpayers also have the option of calculating and deducting the actual costs of using their vehicle rather than using the standard mileage rate.
The standard mileage rate is not available for use with any vehicle that has previously been depreciated under an accelerated depreciation system or after claiming a Section 179 deduction for that vehicle.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.