2013 Standard Mileage Rates Allowed By The IRS

The 2013 standard mileage rates for business purposes, and medical and moving purposes show modest increases from 2012 levels.  Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be as follows: 56.5 cents per mile for business miles driven, 24 cents per mile driven for medical or moving purposes, and they remain at 14 cents per mile driven in service of charitable organizations.

As has been the case, you are not allowed to 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 any vehicle used for hire or for more than four vehicles used simultaneously.

Of course, you always have the option of calculating the actual costs of using the vehicle rather than using the standard mileage rates.

Employers are not necessarily obligated to pay their employees for these types of errands.  And charitable organizations are under no requirement to reimburse volunteers for miles driven.  Employees, the self-employed, and volunteers can generally use these numbers to track transportation costs and deduct them for tax purposes.  If you intend to do this, you should keep a written log showing miles driven, the date, and the purpose of the trip.  While this is not submitted with the return, it can prove invaluable if the IRS gets nosy.

IR-2012-95, Revenue Procedure 2010-51 contains additional details regarding the 2013 standard mileage rates and is available from www.irs.gov.