IRS announces decrease in business mileage deduction rate

The Internal Revenue Service (IRS) has announced the 2014 national optional business mileage deduction rate of 56 cents.


The Internal Revenue Service (IRS) has announced the 2014 national optional business mileage deduction rate of 56 cents for U.S. business drivers, effective January 1, 2014.

To establish the rate, the IRS worked closely with Runzheimer International.

The industry leader in employee mobility solutions - including business vehicle reimbursements, business travel, relocation, routing and logistics and mobile device expense management, Runzheimer International has provided annual vehicle cost data to the IRS since 1980.

The company also provides mobility benchmark data to organizations in the U.S. and Canada.
The 2014 rate of 56 cents decreases as compared to the current rate of 56.5 cents-per-mile, which went into effect January 1, 2013.

"The decrease in the mileage rate for 2014 reflects slightly lower fuel costs as well as lower vehicle cost components, such as depreciation," said Cris Robinson, research analysis supervisor of Runzheimer International.

"The data Runzheimer International collects for the IRS highlights the shifts in market conditions nationwide and enables the IRS and other organizations to make more informed business decisions related to vehicle costs."

The 56 cents-per-mile is the amount that a U.S. taxpayer can deduct for vehicle expenses on a 2014 tax return for recorded business miles.


 

We Recommend