Wednesday, January 9, 2013

IRS Increases Standard Mileage Rate

Nov. 21, 2012

WASHINGTON — 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.
  • 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 1 cent from the 2012 rate. The medical and moving rate is also up 1 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.

No comments:

Post a Comment

Thank you in advance for your comments. Remember, your comments will be made public within a few minutes. If you'd like to suggest a topic of discussion for a future PDT post, please e-mail your suggestions to editor@leadinghomecare.com.

Content of this blog is copyright 2008 Leading Home Care ...a Tweed Jeffries company, all rights reserved