Accounting News

Tuesday, November 27, 2012
2013 Mileage Rates Posted

cars on road
The IRS has issued the standard mileage deduction for 2013. Starting on January 1st of 2013 the rate will be $0.565 per mile for business travel. The rate for moving moving purposes is $0.24. The deduction rate for miles driven in the service of charity is $0.14. This represents an increase of $0.01 per mile over the 2012 rates.

The rates are determined by the IRS from a calculation of fixed and variable costs of owning and operating a vehicle. The rate is released annually by the IRS per Rev. Proc. 2010-51.

Taxpayers may still use the actual costs of operating the vehicle as opposed to the standard mileage deduction. The exception is if the business has used a depreciation method on the vehicle. In this case they must use the actual costs of operating the vehicle.

Along with the IRS many companies use the standard mileage deduction for employee expense report. If you  have any questions on the impact to your businesses accounting then we are here to help.

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