The New Standard for Mileage
Tax rates aren't the only things changing after 2013. Beginning January 1, 2014, standard mileage allowances will adjust downward. Notice 2013-80 provides that the standard mileage rate for transportation or travel expenses will be 56¢ per mile for all miles of business use (business standard mileage rate). The standard mileage rate will be 23.5¢ per mile for use of an automobile (1) for medical care as described in Code Sec. 213; or (2) as part of a move for which the expenses are deductible under Code Sec. 217. The standard mileage rate is 14¢ per mile for use of an auto in rendering gratuitous services to a charitable organization under Code Sec. 170. It is also important to note that the standard mileage rate may not be used for an automobile under certain circumstances, i.e. the automobile was previously depreciated using a method other than straight-line, an expense deduction has been claimed under Code Section 179, additional first-year depreciation allowance has been claimed, etc. Consult your tax advisor to ensure you are using the correct rates. As 2013 comes to an end and you begin adjusting to the new tax laws in place, don't forget there is a new standard in town when it comes to mileage.
For more information on this topic contact: Amber Brown