IRS Releases Calculated Standard Mileage Rates for 2013

The Internal Revenue Service has calculated that mileage rates for operating an automobile for work will go up 1 cent in 2013, a spokeswoman for the agency said.

On Monday, the IRS released its 2013 optional standard mileage rates that are used to calculate the deductible costs of operating a car, van, pickup or panel truck for business, charitable, medical or moving purposes.

The rate has been calculated at 56.5 cents per mile for business miles driven, 24 cents per mile driven for medical or moving purposes and 14 cents per mile driven in service of charitable organizations.

The rate for business miles driven during 2013 increases 1 cent from the 2012 rate, IRS Spokeswoman Dianne Besunder said.

The medical and moving rates are also both up 1 cent per mile.

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

The medial and moving rates are based on the variable costs.

Besunder said a taxpayer would not be able to use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System 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 simultaneously.

Other requirements for a taxpayer to use the mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense can be found in the IRS’s Rev. Proc. 2010-51.

Notice 2012-72 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.

For more information, visit the IRS’s website.