NORMAN — The Internal Revenue Service recently 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, the standard mileage rates for the use of cars, vans, pickups or panel trucks will be:
· 56.5 cents per mile for business miles driven
· 24 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 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 2012-72 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 local news and more, subscribe to The Norman Transcript Smart Edition, or our print edition.
Commuters Face Delays After Conn. Train Accident
Raw: Swarm of Tornadoes Slams Plains
Raw: Fierce Bombing in Qusair, Syria
RAW: TV Staff Take Cover From Tornado
Raw: Accused US Spy Reportedly Leaves Russia
AP CEO: Records Seizure 'Unconstitutional'
Fatal Hot Air Balloon Accident in Turkey
Tornadoes, Storms Strike Midwest
'Babyland': Camp Lejeune's Toxic Legacy?
Raw: Heavy Tornado Damage in Shawnee, Okla
NTSB Begins Investigation Into Conn. Train Crash
Could Tobacco Be the Next Biofuel?
