Articles

Mileage Rates Decrease For 2014

In Accounting & Finances, Business, Taxes on January 13, 2014 by Sufen Wang

Going the Extra Mile on the Job? Now it’s Worth a Little Less: Mileage Rates Decrease For 2014

 

images2Los Angeles is a city of knotted freeways, frayed nerves, and two hour commute cushions – both ways – to account for traffic. In an area like Southern California, where running a simple errand for the boss can easily be the hardest part of the job, every driving-related cent counts. That’s why it’s big news that the 2014 optional standard mileage rates will be half a penny less than the 2013 rates.

 

This change in change applies both to business miles driven and for moving or medical purposes. We’re looking at 56 cents/mile for business miles driven and 23.5 cents/mile for medical or moving purposes. The decrease goes hand-in-hand with the drop in average gas prices, so things should ultimately even out in your wallet. Since the 14 cents/mile rate in service of a charitable organization is determined by statute, it will remain the same.

 

imagesThe keyword here is “optional.” Taxpayers can always choose to calculate the actual costs of using their vehicle rather than using the standard mileage rates. If you break the bank trying to keep your vehicle from breaking down, this might be the way to go. But it’s a lot of work to keep track, so you have to decide if the time you invest in doing this arithmetic is worth it.

 

The rate change won’t have an effect if you use any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction for that vehicle. That’s because you can’t use the business standard mileage rate under those circumstances. Notice 2013-80, the official IRS release, has more on this and other stipulations. Take a look at it so you can navigate the new year with a clear sense of the financial road ahead.

Sufen Wang, M.S.Accountancy
Wang Solutions, Long Beach, CA (562) 856-0793
Editor: Hannah Huff, M.F.A. Creative Writing: Poetry, (626) 806-5805

8 Responses to “Mileage Rates Decrease For 2014”

  1. […] Mileage charges decrease Wang solutions […]

  2. […] Mileage charges decrease For 2014 options […]

  3. I know this web site presents quality based articles or reviews and other data, is there any other website which provides such things in quality?

  4. Its like you read my mind! You seem to know a lot about this, like you wrote the book in it or something. I think that you could do with some pics to drive the message home a bit, but other than that, this is great blog. An excellent read. I will definitely be back.

  5. Thanks for a marvelous posting! I definitely enjoyed reading it, you will be a great author. I will ensure that I bookmark your blog and will eventually come back in the foreseeable future. I want to encourage you continue your great posts, have a nice afternoon!

  6. … [Trackback]

    […] Read More here: sufenwang.com/2014/01/13/mileage-rates-decrease-for-2014/ […]

  7. ӏ have been exƿloring fоr a little for aոy high quality articles or weblog
    posts in this kind of house . Exρloring in Yahoo I finally stumbled upon this webѕite.

    Readinց this informatiߋn Sο i am glad to exhibit that I’ve a
    very just right uոcɑnny feeling Ӏ discovered just
    what I nеeded. I such a lot iոdubitably will make sure to do not forget tɦis web site
    and give it a glance regularly.

  8. It’s awesome for me to have a site, which is valuable in favor of my knowledge.

    thanks admin

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: