The IRS has issued its 2014 optional standard mileage rates to calculate deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning 1/1/14 the standard mileage rates for the use of a car, van, pickup or panel truck will be:

  • $0.56/mile for business purposes
  • $0.235/mile for medical or moving purposes
  • $0.14/mile in service of charitable organizations

The business, medical and moving expense rates decrease $0.005/mile from 2013 rates.

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.  The charitable rate is based on statute.

Taxpayers can also calculate actual costs of using their vehicle rather than using the standard mileage rates.  They may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a §179 deduction for that vehicle.

In addition the business standard mileage rate cannot be used for more than four vehicles used simultaneously.