Client Login

IRS Increases Standard Mileage Rates for Business, Moving, and Medical

The 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes have been issued. Notice 2012-72.

Beginning on January 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

(1) 56.5 cents per mile, up from 55.5 cents per mile in 2012, for business miles driven;

(2) 24 cents per mile, up from 23 cents per mile in 2012, for medical or moving purposes; and

(3) 14 cents per mile for charitable purposes.

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.

Don’t forget to maintain proof of the business use of your vehicle.  Here are the rules:

Substantiation by adequate records

(i)In general.—

To meet the “adequate records” requirements of section 274(d), a taxpayer shall maintain an account book, diary, log, statement of expense, trip sheets, or similar record (as provided in paragraph (c)(2)(ii) of this section), and documentary evidence (as provided in paragraph (c)(2)(iii) of this section) which, in combination, are sufficient to establish each element of an expenditure or use specified in paragraph (b) of this section. It is not necessary to record information in an account book, diary, log, statement of expense, trip sheet, or similar record which duplicates information reflected on a receipt so long as the account book, etc., and receipt complement each other in an orderly manner.

(ii)Account book, diary, etc.—

An account book, diary, log, statement of expense, trip sheet, or similar record must be prepared or maintained in such manner that each recording of an element of an expenditure or use is made at or near the time of the expenditure or use.

Many apps used on smartphones have been created to help business owners track and substantiate their business mileage.  Check out your apps store.

Industry News

Read All Articles

January 8, 2016

Questions?

Do you have a question or need more information about our services? Complete the form below, and we'll be in touch with you.

Saunders Nydegger, PC

286 N. Gateway Dr. Ste. 202
Providence, UT 84332

435-752-9700

swacpa.com

© Saunders Nydegger, PC.
Se Habla Espanol