Vehicle Mileage Rates Rise in 2013

If you use your car, truck, or van for certain purposes other than personal reasons, you can deduct the related costs or use an IRS-set mileage rate. The mileage rate for 2013 is:

• 56.5 cents per mile for business driving (a penny more than in 2012).
• 24 cents per mile for medical or moving purposes (a penny more than in 2012).
• 14 cents per mile for charitable purposes (unchanged from 2012).

Important: Using the standard mileage rate means you don’t have to keep receipts to substantiate driving-related costs. However, you must still keep records to substantiate the mileage for each purpose and other information required by the tax law.

For each mile you deduct for business driving using the standard mileage rate, you must reduce the basis in your vehicle by a “deemed depreciation” rate. For 2013, this rate is 23 cents per mile, the same as it was in 2012.