The IRS has now issued the 2013 optional standard mileage rates that will be used when calculating the deductible costs for operating an automobile for medical, moving, business, or charitable purposes. Starting on January 1, 2013 the standard mileage rates that are going to be used for car, vans, pickups, or panel trucks will be as follows: - 56.5 cents per mile for business miles driven
- 24 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The rate for business miles driven in the year 2013 has gone up by one penny when compared to the 2012 business miles driven rate. The medical and moving driven rate has also increased by a penny per mile when compared to the 2012 rates. The standard mileage rate for business is based on the annual study of both the fixed and variable costs related to vehicle operation. Medical and moving purposes are only based on the variable costs. Taxpayers will continue to be able to calculate the actual costs of using their vehicle if they want instead of using the standard mileage rates provided above. A taxpayer is prohibited from using the business standard mileage rate for a vehicle if they have used any type of depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or if they have claimed a Section 179 deduction for the automobile. Additionally, the business standard mileage rate can only be used for four automobiles at a time. The above mentioned requirements and other requirements that a taxpayer uses to use the standard mileage rate to determine their deductible business, moving, charitable expenses, or medical expenses can be found in Rev.Proc.2010-51. Notice 2012-72 provides the current mileage rates, the amount a taxpayer must use when determining their reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that taxpayers can use when computing the allowance under the fixed and variable rate plan. If you file your taxes with TurboTax they will have your back. You can expect to answer a few simple but necessary questions so they can provide you with all of the tax deductions and credits that apply to your particular tax situation. Furthermore, if you are curious about how much money you can expect to get back in your refund they have a free tax refund calculator that you can use at any time to make waiting for your refund more manageable. Find out more about : Tax Credits
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