The IRS on Dec. 6 issued the 2014 optional standard mileage rates used to calculate the deductible costs of driving for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2014, the standard mileage rate for using a car for business will be 56 cents per mile. The rate for driving for medical or moving purposes will be 23.5 cents per mile, and the rate for charitable services will be 14 cents per mile. The business, medical and moving expense rates have decreased one-half cent from 2013 rates.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating a vehicle. The rate for medical and moving purposes is based on the variable costs. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.