2013 Standard Mileage Rates for Business, Medical, and Moving

Internal Revenue Service (IRS) has announced the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Beginning on January 1, 2013, the standard mileage rates for the use of a 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 for 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. 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 cost of using their vehicles rather than using the standard mileage rates. A taxpayer may not used 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, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medial, or charitable expense are in Revenue Procedure 2010-51. The IRS Notice 2012-72 contains the standard mileage rate, the amount a taxpayer must use in calculating reduction to basis for deprecation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.