If you drive a car, truck or van for work, you'll want to make sure you know standard mileage rates the Internal Revenue Service (IRS) has set for 2014.
These mileage rates are used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes. So when it comes to filing your taxes this year, you'll need these numbers!
New for 2014
As of January 1, 2014, the standard mileage rates are as follows:
- Businesses = 56 cents per mile driven
- Medical or moving = 23.5 cents per mile driven
- Charitable organizations = 14 cents per mile driven
Make Sure You Qualify
Before you calculate your deduction, make sure you qualify. The IRS reminds taxpayers that they cannot 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.
Although the IRS provides the standard mileage rate for ease and convenience, you're not required to use it. If you prefer, you can calculate the actual costs of using your vehicle instead of using the standard mileage rates.
Remember, if you have questions or concerns, talk to a tax consultant or accountant to discuss your options and unique situation. Please feel free to pass these tips along to your team, clients, and colleagues.