On December 6, 2013, the IRS released the optional standard mileage rate used to calculate the deductible costs of operating a vehicle for business, charitable, medical or moving purposes.
Effective January 1, 2014, the standard mileage rate for the use of a vehicle will be:
- 56 cents per mile for business purposes
- 23.5 cents per mile for medical or moving purposes
- 14 cents per mile for charitable purposes
The rates are .5 cents less than the 2013 for business, medical, and moving purposes. There is no change to the rate for charitable purposes.
Taxpayers retain the option of electing to deduct the actual vehicle cost incurred rather than the standard mileage rate.
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