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Business Mileage Tax Deduction Reduced for 2014

The optional standard mileage rates in 2014 for business miles driven and for moving or medical purposes decreased one-half cent from the 2013 rates; as stated by the Internal Revenue Service.

The new 2014 rate for business miles will be 56 cents per mile (vs. 56.5¢). The new rate for medical and moving purposes is 23.5 cents per mile (down from 24¢). The 14 cents per mile rate for charitable organizations remains the same for 2014.

Additionally, the IRS provided the amounts taxpayers must use to calculate reductions in basis for depreciation under the business standard mileage rate, and the maximum standard automobile cost for use in calculating the allowance under a fixed and variable rate plan. Ask your accountant about Notice 2013-80.

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