The Internal Revenue Service has raised most of the standard mileage rates by $0.01/mile for 2013 when calculating the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning 1/1/13 the standard mileage rate for the use of a car, van, pickup or panel truck will be $0.565/mile for business miles driven and $0.24/mile driven for medical or moving purposes. The increase represents a rise of $0.01/mile over the 2012 allowance. For 2013 the charitable rate remains unchanged at $0.14/mile.
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.
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