IRS Announces 2014 Standard Mileage RatesDecember 09, 2013
Mileage rates announced for business, medical and moving purposes.
The IRS grants taxpayers a deduction for the costs of using their vehicles for various reasons. This section of the code grants taxpayers a reimbursement (with the proper documentation) for the following expenses.
Beginning January 1, 2014 the 2014 Standard Mileage Rates are:
- 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
The standard mileage rate is determined using various factors such as the state of the economy, gas prices, and the estimated cost of normal wear and tear on a vehicle; thus it is intended to reimburse over and above the amounts for which someone pays strictly for gas. Learn more about determining whether to use the actual expenses incurred or the standard mileage rates.
Tips for Reducing Fuel Consumption
The price of gas seems to always be increases. Below are several ways in which you can improve your fuel economy:
Drive less aggressively (speeding up and slowing down rapidly) can lower your gas mileage by as much as 33%. Try maintaining a constant speed, like when you use cruise control, this will likely help you save gas.
- Drive slower. Every 5 Miles Per Hour you drive over 60 MPH can reduce your fuel economy by 7%
- Letting your car Idle can cost you $0.04 per minute. That means if you let your car warm up for 10 minutes every morning that’s $2.80 a week you're spending on wasted fuel
- Getting a tune up can help improve your gas mileage by 4%
- An extra 100 pounds of cargo can decrease fuel economy by 1-2%
- A roof rack can be a great use of extra space but when full can reduce your gas mileage by up to 5%
A member of the KLR Tax Services Team can assist you with expensing your travel costs or any of your year-end tax planning needs. Please contact us at email@example.com or call 888-857-8557.