The Internal Revenue Service has issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charity, and medical or moving purposes.

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

• 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.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs only.

The standard mileage rate is determined using various factors such as the state of the economy, gas prices, and the estimated cost of normal wear and tear on a vehicle; thus it is intended to reimburse over and above the amounts for which someone pays strictly for gas.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Read our blog “Should I use the actual expenses incurred or the standard mileage rate?” to learn which method is best for you.

Any member of the KLR Tax Services Group can help you with calculating your business travel expenses or any of your tax planning needs. Contact us at TrustedAdvisors@kahnlitwin.com or call 888-KLR-8557.