Today, the IRS announced the standard mileage rates for 2014. The standard rates are an optional method taxpayers may use to calculate the deductible costs of operating an auto for business, medical, charitable or moving purposes.
Effective January 1, 2014, the standard mileage rates will be:
- 56 cents per mile for business miles (down from 56.5 cents in 2013)
- 23.5 cents per mile for medical or moving mileage (down from 24 cents in 2013)
- 14 cents per mile for charitable mileage (no change from 2013)
Why is the business mileage rate higher?
The IRS includes a depreciation factor in with the cents per mile allowance calculation for business miles. Medical, charitable and moving mileage are all personal in nature and, as a result, do not include a depreciation factor.