New Tax Code: Business Mileage Deduction Goes Down

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Driving IRS

The IRS Is Dissing Your Ride

If you use your vehicle for work — and take a tax deduction for mileage — prepare to get less love from the Federal Government in 2014.

Workforce mobility specialist Runzheimer International points out that the Internal Revenue Service (IRS) has released a 2014 national optional business mileage deduction rate of 56 cents for U.S. business drivers.

This rate, which is down from the current 56.5 cents per mile, goes into effect on January 1, 2014.

Runzheimer points out that the rate is being decreased due to slightly lower gas prices, and lower vehicle cost components, such as depreciation. Both of these factors have indeed declined in 2013, but will they decrease or increase in 2014? We’ll see.

Just be sure to factor this new figure into your 2014 tax planning, and into any mileage reimbursement negotiation you may be having with an employer or client. You might also take this into account if you’re shopping for a new vehicle, since it’s just another reason to choose one that get’s decent gas mileage.

Half a cent per mile is not a lot of money for most people, but some drivers are racking up a lot of miles annually while driving for work. After all, these days, every little bit counts.

 

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Link:

http://www.runzheimer.com

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