Every time you fill up at the pump, you're reminded that operating a vehicle isn't cheap. Fortunately, there is some relief from the IRS.

The table below lists the standard mileage rates for 2013.

Standard mileage rates

2013

Business miles 56.5 cents for 2013
(up from 55.5 cents for 2012).
Miles driven for medical or moving expenses 24 cents per mile for 2013
(up from 23 cents in 2012 ).
Miles driven in service of a charity 14 cents for 2013 (unchanged from 2012)

Although the standard mileage rate is easier for recordkeeping purposes, you almost always get a larger deduction by keeping track of actual expenses. You can write off the business-use percentage of operating costs such as gasoline, oil, maintenance and insurance. Plus, you can deduct depreciation.

To use the actual expense method, you must keep a log to record the time, place, mileage and purpose of each business trip, along with the total mileage for the year. That allows you to calculate the business use percentage.

Contact us to learn the most tax-effective ways to operate vehicles for business purposes.

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