IRS Bumps 2013 Standard Mileage Rates by a Penny per Mile
- By: Paul Neiffer
- November 25th, 2012
- 1 Comment
The IRS announced last week (IR-2012-95) a penny per mile increase in the standard mileage rate for business and medical or moving purposes.
For business purposes, the rate increases from 55.5 cents per mile to 56.5 cents per mile (don’t ask me why they do not round it to the nearest penny).
For medical or moving purposes, the rate increases from 23 cents per mile to 24 cents per mile.
The charitable rate remains at 14 cents per mile.
The business rate is based on an annual study of the fixed and variable costs of operating an automobile. Taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates ( I would guess that most farmers use this method rather than the standard mileage rate).
Paul Neiffer, CPA
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a partner with CliftonLarsonAllen in Yakima, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. In fact, Paul drives combine each summer for his cousins and that is what he considers a vacation. Leave a comment for Paul. If you would like to leave a comment for Paul, follow the link above, however, please make sure to include your email address so that he can reply to your comment (your email address will not automatically show up).
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