December 10, 2013 4:37 pm

Vehicle Mileage Rates Drop Slightly in 2014

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 2014 is:

  • 56 cents per mile for business driving (a half penny less than in 2013).
  • 23.5 cents per mile for medical or moving purposes (a half penny less than in 2013).
  • 14 cents per mile for charitable purposes (unchanged from 2013).

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 2014, this rate is 22 cents per mile; it was 23 cents per mile in 2013.

Source: Notice 2013-80

Tax Glossary

Qualified plan

A retirement plan that meets tax law tests and allows for tax deferment and tax-free accumulation of income until benefits are withdrawn. Pension, profit-sharing, stock bonus, employee stock ownership, and Keogh plans and IRAs may be qualified plans.

More terms