The Internal Revenue Service released the optional 2014 standard mileage rates used to calculate deductible costs of using a vehicle for business, charity, moving and medical proposes.
Beginning on Jan. 1, 2014, the standard mileage rates for the use of a vehicle for business will be 56 cents per mile, 23.5 cents per mile for medical or moving and 14 cents per mile for charitable organizations.
The business, medical, and moving expense rates decrease one-half cent from the 2013 rates. The charitable rate is based on statute.
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.
Taxpayers using the standard mileage rates will need to maintain a mileage log. A mileage log should include the odometer reading, date, total miles driven and the location driven to.