New rates used to calculate deductible costs of operating an automobile for business, charitable, medical or moving purpose were increased for 2013, the Internal Revenue Service announced Feb. 4 in an emailed news release.
The rates, which took effect on Jan. 1, mandates the standard mileage rate for cars, vans, pickups and panel trucks is 56.5 cents per mile.
Vehicles used for medical or moving purposes will have a rate of 24 cents per mile.
Vehicles used on behalf of charitable organizations will have a rate of 14 cents per mile.
The rates, generally, went up one cent per mile from 2012.
"Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates," according the IRS.
"A taxpayer may not use 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," the IRS said. "In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously."
For the formal rules on mileage deductions, read Notice 2012-72 on the IRS website.
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