IRS Increases Standard Mileage Rate for 2013
Optional standard mileage rates for use of a vehicle will go up by 1 cent per mile for 2013. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.
For business use of a car, van, pickup truck, or panel truck, the 2013 rate will be 56.5 cents per mile. Driving for medical or moving purposes may be deducted at 24 cents per mile. Both rates are 1 cent higher than for 2012.
The rate for service to a charitable organization is unchanged, set by statute at 14 cents a mile.
The portion of the business standard mileage rate that is treated as depreciation will be 23 cents per mile for 2013, unchanged from 2012.
For purposes of computing the allowance under a fixed and variable rate (FAVR) plan, the maximum standard automobile cost for 2013 is $28,100 for automobiles or $29,900 for trucks and vans, increases of $100 and $600, respectively, from 2012. Under an FAVR plan, a standard amount is deemed substantiated for an employer’s reimbursement to employees for expenses they incur in driving their vehicle in performing services as an employee for the employer.
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