2013 Standard Mileage Rates

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.

Attention employers! Medicare withholding tax going up (maybe)….

Don’tcha just love the uncertainty in the title?  Here you are, trying to grow your business and you need to worry about a .9% payroll tax that may or may not happen just 6 months from now.

Use this article as a heads up — this may be coming down the road in 2013, and so you need to be aware of the additional 0.9% Medicare tax that is scheduled to go into effect in 2013.

(I love how they make it 0.9%  It reminds me of a car salesman trying to sell you a car for under $50K when the price tag is $49,999.) [Read more…]