Business Mileage Rate Is 56 Cents for 2014

Business Mileage Rate Is 56 Cents for 2014

The mileage rate for business use of vehicles is 56 cents-per-mile in 2014, down from 56.5 cents in 2013. The rate, set periodically by the Internal Revenue Service, is for owned or leased autos, including vans, pickups or panel trucks.

The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense is 23.5 cents per mile for 2014, which is also down half a cent from 2013. The use of a vehicle for charitable purposes remains 14 cents-per-mile, which is set by statute and not the IRS.

Taxpayers have the right to use the expense method, which requires the individual to determine the actual costs to operate the vehicle specifically for business purposes. Actual expense items include gas, oil, repairs, tires, license and registration fees, auto insurance and other qualified expenditures.