Current IRS Mileage Rates for 2014
The Internal Revenue Service (IRS) has revealed that optional standard mileage rates will be used to determine the deductible costs of operating a vehicle for charitable, medical, moving, and business purposes.
On January 1, 2013 the standard mileage rates for the usage of vehicles (vans, pickups, and panel trucks included) will be as follows:
You may have noticed that the business miles rates have went up one penny from the previous rate. The medical and moving rate has also increased by a penny compared to the rate in 2012, 2013.
Rates are Based on an Annual Study
The standard mileage rate for businesses is composed based on an annual study that was conducted relating to the fixed and variable cost that come along with operating a vehicle. The medical and moving purposes mileage rate is based on the variable costs alone.
Under the Modified Accelerated Cost Recovery System (MACRS) taxpayers are not permitted to use the standard business mileage rates for using an automobile after they have utilized any depreciation or claimed a Section 179 deduction for the automobile. Additionally, the business standard mileage rates can be used for four vehicles simultaneously.
The above mentioned requirements must be met if a taxpayer plans on utilizing the standard mileage rate. Furthermore, the standard mileage rate can be used to estimate the amount of moving, medical, business, and charitable expenses that are in Rev.Proc.2010-51.
Notice 2012-72 provides the standard mileage rates, the amount taxpayers have to use when calculating their reductions to tips for depreciation taken under the business standard mileage rate, and even the maximum standard automobile costs that taxpayers have to use when it comes to calculating their allowance under the fixed and variable rate plan.
There’s Help at Tax Time
Turbo Tax understands that tax season can be stressful and confusing for some. However, they make sure that their customers never miss out on a deduction and are able to keep the maximum amount of their hard earned money while receiving the biggest refund possible.
Turbo Tax covers more than 350 deductions and shows you which of them you qualify for. Be sure to check out their free tax refund estimator and if you ever have any tax related questions contact them at any time to have your questions answered by a tax expert.
The Internal Revenue Service (IRS) has revealed that optional standard mileage rates will be used to determine the deductible costs of operating a vehicle for charitable, medical, moving, and business purposes.
On January 1, 2013 the standard mileage rates for the usage of vehicles (vans, pickups, and panel trucks included) will be as follows:
- 56.5 cents per mile for businesses purposes
- 24 cents per mile for medical and moving purposes
- 13 cents per mile for charitable purposes
You may have noticed that the business miles rates have went up one penny from the previous rate. The medical and moving rate has also increased by a penny compared to the rate in 2012, 2013.
Rates are Based on an Annual Study
The standard mileage rate for businesses is composed based on an annual study that was conducted relating to the fixed and variable cost that come along with operating a vehicle. The medical and moving purposes mileage rate is based on the variable costs alone.
Under the Modified Accelerated Cost Recovery System (MACRS) taxpayers are not permitted to use the standard business mileage rates for using an automobile after they have utilized any depreciation or claimed a Section 179 deduction for the automobile. Additionally, the business standard mileage rates can be used for four vehicles simultaneously.
The above mentioned requirements must be met if a taxpayer plans on utilizing the standard mileage rate. Furthermore, the standard mileage rate can be used to estimate the amount of moving, medical, business, and charitable expenses that are in Rev.Proc.2010-51.
Notice 2012-72 provides the standard mileage rates, the amount taxpayers have to use when calculating their reductions to tips for depreciation taken under the business standard mileage rate, and even the maximum standard automobile costs that taxpayers have to use when it comes to calculating their allowance under the fixed and variable rate plan.
There’s Help at Tax Time
Turbo Tax understands that tax season can be stressful and confusing for some. However, they make sure that their customers never miss out on a deduction and are able to keep the maximum amount of their hard earned money while receiving the biggest refund possible.
Turbo Tax covers more than 350 deductions and shows you which of them you qualify for. Be sure to check out their free tax refund estimator and if you ever have any tax related questions contact them at any time to have your questions answered by a tax expert.