IRS Announces 2014 Standard Mileage Rates

The cost of fueling up has gone down and with it so are the standard mileage rates for 2014.  This past weekend the IRS announced that the standard mileage rates for business, charitable, medical, or moving expenses will decrease 0.5 cents per mile.  The new mileage is as follows:

56 cents per mile for business miles driven

23.5 cents per mile driven for medical or moving purposes

14 cents per mile driven in service of charitable organizations

The rate for charitable expenses remain the same as they were in 2013 – as they have been since the 90’s, while the rates for business, medical and moving expenses are adjusted each year, the rate for charitable expenses is fixed by statute and can only be changed by Congress.

The rates for business miles traveled are applicable on owned or leased vehicles (including vans, pickups, or panel trucks) and can also be used by employers to reimburse tax-free under an accountable plan employees who supply their own autos for business use, and to value personal use of certain low-cost employer-provided vehicles.

The standard mileage rates are used to easily calculate the amount of a deductible business, moving, medical or charitable expense.  Taxpayers also have the option of deducting their actual costs rather than using the standard mileage rates, but no matter which option you choose, be sure to keep good records.

The new rates begin to take effect on January 1st, 2014 and will be on your 2014 returns filed in 2015.


For more information about the professionals at BW James and professional tax and financial planning services visit http://www.bwjames.com