Standard Mileage Rates Announced for 2013
The Internal Revenue Services (IRS) issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The standard mileage rate for business is based on an annual study of both the fixed and variable costs of operating an automobile, while only variable costs are considered for medical and moving purposes.
Beginning January 1, 2013, the standard mileage rates for the use of a car (also SUV‘s, vans, trucks, etc.) will be as follows:
- 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 each of the three categories increased 1 cent from the 2012 rates. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage.
Notice 2012-72 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for deprecation taken under the business standard mileage rate, and other pertinent information in regards to computing the allowance under a fixed and variable rate plan.