The 2013 Internal Revenue Service standard mileage rates are as follows:

• 56.5 cents per mile for business miles driven.
• 24 cents per mile driven for medical or moving purposes.
• 14 cents per mile driven in service of charitable organizations.

These rates are used to calculate deductible costs of operating an automobile for:

• Business
• Charity
• Medical
• Moving Purposes

These rates are effective as of January 1, 2013, for the use of a car (including vans, pickups or panel trucks) and is determined using several factors such as the state of the economy, gas prices, and the estimated cost of normal wear and tear on a vehicle; thus it is intended to reimburse over and above the amounts for which someone pays strictly for gas.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Read our blog “Should I use the actual expenses incurred or the standard mileage rate?” to learn which method is best for you.

Any member of the KLR Tax Services Group can help you with calculating your business travel expenses or any of your tax planning needs.