Bump in Standard Mileage Rate for 2013
The Internal Revenue Service has announced that the optional standard mileage rate for employees who use their own cars for business purposes will increase to 56.5 cents per mile on Jan. 1, 2013. The new rate compares with a rate of 55.5 cents per mile for 2012.
Employers who use the standard mileage rate to reimburse employees may deduct the reimbursement as a business expense. The rate is based on an annual study of the fixed and variable costs of operating an automobile.
Also for 2013, the standard mileage rate for miles driven for medical or moving purposes will be 24 cents, up from 23 cents, and the rate for miles driven in service of charitable organizations will remain unchanged at 14 cents
For more information on mileage rates, see Revenue Procedure 2012-72.
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