IRS Announces 2013 Optional Standard Mileage Rates

The IRS has issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or job-related moving purposes. Effective January 1, 2013, the various standard mileage rates for the operation of a car, van, pickup, or panel truck are as follows:

  • 56.5 cents per mile for each business mile driven (up from 55.5 cents in 2012). This rate is based on an annual study of the fixed and variable costs of operating an automobile.
  • 24 cents per mile driven for medical or moving purposes (up from 23 cents in 2012) — based on variable costs.
  • 14 cents per mile driven in service of a charitable organization (unchanged from 2012).

Taxpayers have the option of calculating the actual costs of using their vehicles rather than using the standard mileage rates. Certain expenses — such as eligible parking fees — may be deducted separately from the standard rate.

However, a taxpayer may not use the business standard mileage rate for a vehicle after claiming a depreciation deduction under the Modified Accelerated Cost Recovery System or after electing to claim a tax law Section 179 expensing deduction for that vehicle. Furthermore, the business standard mileage rate cannot be used for more than four vehicles simultaneously.

Contact us for more information about claiming deductions for vehicles used in your business or for charitable, medical, or moving purposes. We’re here to help.