The IRS recently announced adjustments for the 2013 standard mileage rates which are used to calculate deductable costs for using a car, van, pickup, or panel truck for business, charitable, medical, or moving purposes. The standard mileage rate is optional and the actual costs of using a vehicle can also be used. These new rates will be:
- 56.5 cents per mile for business miles driven (1 cent more than last year)
- 24 cents per mile driven for medical or moving purposes (1 cent more than last year)
- 14 cents per mile driven in service of charitable organizations
These rates are based on an annual study from the IRS and may not be used if Modified Accelerated Cost Recovery System (MACRS) depreciation or Section 179 deduction was used for the vehicle. Additionally, only up to four vehicles can simultaneously use the business standard mileage rate. Under this plan, the standard automobile cost for a car may not exceed $28,100 and the maximum standard cost for a truck or van may not exceed $29,900. These rate changes begin on January 1, 2013.
