Category Archives: IRS Standard Mileage Rate

IRS 2014 Standard Mileage Rate

Recently the IRS issued Notice 2103-80, announcing a new IRS standard mileage rate for 2014. The new rate—56 cents per miles for business miles driven—is a half-cent decrease from last year’s rate and took effect on January 1, 2014.

To determine the minimum rate, the IRS conducts an annual study of the fixed and variable costs of operating an automobile. It is believed that a dip in fuel prices last year is the probable reason for the rate shift. In the notice, the IRS reiterated that taxpayers are not required to use the standard mileage rate should they prefer to track and deduct the actual costs of travel themselves.

Tallie engineers have already adjusted its default settings to reflect the new IRS 2014 Standard Mileage Rate mapping calculations and current users will be automatically converted to the new rate. Tallie admins that have set a custom mileage rate will not be affected.

To view, edit and add new mileage rate categories, log into your administrator account and select the Settings tab. From there, click on the Manage Lists link, followed by Expense Categories and then Mileage.

IRS 2014 Standard Mileage Rate Announcement:

WASHINGTON — The Internal Revenue Service today issued the 2014 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

The business, medical, and moving expense rates decrease one-half cent from the 2013 rates. The charitable rate is based on statute.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

IRS 2014 Standard Mileage Rate
56 cents per mile for business miles driven
23.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
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. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical, or charitable expense are in Rev. Proc. 2010-51. Notice 2013-80 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.