The IRS has announced mileage rates for 2014.
The business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2014, will be 56 cents per mile, down one half cent from the 56.5 cents rate in effect during 2013 [Notice 2013-80, released 12-6-13].
The mileage rate may be used to compute the amount to reimburse employees who are using their own cars for business purposes. It may also be used by employers that elect to use the “cents-per-mile” valuation method for purposes of determining the amount that needs to be imputed to an employee’s income for personal use of certain company-owned or leased nonluxury vehicles.
In addition, the 2014 standard rate for miles driven for medical or moving purposes will decrease to 23.5 cents per mile, down from the 24 cents-per-mile rate in effect during 2013.
Finally, the standard mileage rate for operating a passenger car for charitable purposes, which is set by law, will stay at 14 cents per mile in 2014.