There are new rates when it comes to calculating the deductible costs of mileage in 2014, The IRS issued their 2014 optional standard mileage rates that are used for business, charitable, medical or moving purposes. The breakdown is as follows:
- 56 cents per mile for business miles driven
- 23.5 cents per mile for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The business rates are based on an annual study of the fixed and variable costs of operating an automobile. The medical and moving rate is based on the variable costs and the charitable rate is based on statute.
Taxpayers always have the option to calculate the actual costs of operating a vehicle if they do not wish to use the standard rates. If a taxpayer decides to utilize the standard mileage rate, they need to be aware of certain requirements that are outlined in Rev. Proc. 2010-51 and Notice 2013-80.
To read the entire news release, please visit irs.gov.