Standard mileage rates for business, medical and moving travel will decrease for 2014, down one-half cent from 2013 rates. The new rates used to calculated deductible costs for operating an automobile were announced recently by the The business reimbursement rate drops to 56 cents per miles next year, down from 56.5 percent for 2013. The rate for driving for medical or moving purposes moves down to 23.5 cents per mile, also down a half-cent from 2013. The rate for mileage driven for charitable purposes is fixed by law at 14 cents per mile.
The IRS notes the business standard mileage rate for a vehicle cannot be used by taxpayers who use any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction. The business standard mileage rate cannot be used for more than four vehicles used simultaneously.
Taxpayers can choose to use actual costs of using their vehicles for business purposes, rather than utilizing the standard rate.
