Accounting: 2013 Mileage Rate

IRS Announces 2013 Standard Mileage Rates

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

Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56.5 cents per mile for business miles driven
  • 23 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The rate for business miles driven is during 2013 increases 1 cent from the 2012 rate. The medical and moving rate is also up 1 cent per mile from the 2012 rate.

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.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51.

Notice 2012-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

Looking For More?

Comments

Silicon Valley Accounting Solutions produces the Solution of the Week in order to share tips and shortcuts that promote process efficiency and highlight software features that may not be in your current toolbox. Please let us know if you have questions on how to accomplish a particular task or if you simply have a comment to share.

Even if you find that you know most of what you see here, it only takes one “Aha” to make regular visits worthwhile. To avoid missing any solutions, you may subscribe and have a new one delivered to your inbox each week.

Contact Us

We want to help you grow
your business, call us
at: (408) 844-4216 or
find out more here.

Controllership

When you need:
  • Clear processes for cash controls
  • Analysis of results
  • Customized reporting

Accounting

When you need:
  • Timely and accurate bookkeeping
  • Reconciliations and monthly closes
  • Familiarity with popular accounting software
Web Analytics