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Ask Toolkit About the Standard Mileage Rate for 2013

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By | June 12, 2013

Dear Toolkit,

Any word on what the standard mileage rates for 2013 are?

Thanks,

Plan A. Head

Dear Plan A. Head,

The 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes have once again been revealed by the IRS.

Beginning on January 1, 2013, the new standard mileage rates for the deductible use of a car (and vans, pickups or panel trucks) are:

  • 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

While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation. The standard mileage rates for business, medical and moving are based on the annual Runzheimer International study of the fixed and variable costs of operating an automobile.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously. . . meaning no fleets!

You always have the option of calculating the actual costs of using your vehicle for business rather than using the standard mileage rates, but that can be inconvenient and subject to audit.

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