On December 6, the IRS issued Notice 2013-08 updating the optional standard mileage rates for business, medical, moving and charitable expenses. Beginning on January 1, 2014, the standard mileage rates for the use of a vehicle will be:
- 56 cents per mile for business miles drive (a half-cent decrease from 2013)
- 23.5 cents per mile for medical or moving purposes (a half-cent decrease from 2013)
- 14 cents per mile driven in service of charitable organizations (unchanged from 2013)
Taxpayers retain the option of deducting their actual costs, rather than selecting the IRS standard mileage rate. The optional standard mileage rates are used to easily calculate the deductible expenses for business, medical, moving and charitable purposes.
As noted above, these updated rates go into effect at the beginning of 2014. If necessary, based on the changing variable costs to operate a vehicle, the IRS may issue updated rates in the middle of the year as they did in 2011.