Beginning on Jan. 1, 2013, the standard mileage rates for the use of your car (also 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.
You always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
You 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, your business standard mileage rate cannot be used for more than four vehicles used simultaneously.
If you would like to learn more about this tax strategy, please call Susan at 847.895.9880.