IRS Mileage Rate Tax Deduction 2012, 2013

The IRS stands for the Internal Revenue services. As of the year 2012, they have changed the federal government gas mileage rates. We will discuss what the tax rates are used for as well as what the new IRS mileage tax rates are and what other options the taxpayer may be eligible to get.

A mileage rate is known as how many miles are travels for a given reason for business, charity, medical and moving reasons.  Mileage tax rates are known as itemized deductions for the income tax returns. Not everyone has the option to itemize their taxes. In order to be eligible to do so you must be eligible for standard deductions, be a US citizen. They must also have kept all records organized and maintained. The only deductions that are eligible are for that current tax year in which the expenses were paid.

How much per mile?

In the beginning of the year of 2012 that tax rates for a vehicle such as a car, van and pickup trucks start at 55.5 cents per mile for business purposes. It is at 23 cents per mile driven for moving and medical reasons. Then it is 15 cents per mile for driving for charity services that were made. The business rate has not changed from last year, but the moving and medical tax rates have actually dropped by .5 cents per mile.

What most might not know is the taxpayer has the option to calculate an actual cost to them from driving for any of the above reasons instead of using the mileage tax rates.

Another fact that you will need to know when using the federal government gas mileage ratesis, if you depreciate a vehicle using the MACRS system, then you are not eligible to use the standard mileage rate. They also stated to have you make sure you do not try to calculate costs of operating the vehicles for personal use, as this will cause you severe penalties. 

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