IRS Mileage Rate 2014

By Roger Chartier

You ask," What is the 2014 mileage allowance or business mileage deduction?"

The internal revenue just let me know...

The business mileage rate is down!

Well here is the answer - $0.56
That's right it is down from last year by one half of a cent!


We would rather that the deducton went higher but that is the answer for 2014.

If we end up having a year like 2011 where the rate changed mid year then we could have a different rate for the second half of the year. Check back on this site for the change when if is announced.

Depending on the condition, and whether you have a loan on your vehicle, the mileage deduction for miles driven could be more to your advantage for tax purposes. You have to look at the alternatives with the Vehicle Depreciation method.

If you have a vehicle that is paid for, cost nothing for an auto payment and only has a low insurance cost, this could be best for you.
It gets better when you get more MPG, or Miles Per Gallon.

You should be using a mileage log.

See the Mileage Log page for a lot more details and free download and print versions in PDF, BMP and JPG. Keep an extra one around to copy or come here to print more when needed.

What was the mileage rate for 2013?

It was $056.5 cents per mile. That is a bit better than for 2014 but what can we do.

read more about the year 2013, the mileage deduction (allowance) rate.

Back in 2012 you saw a 55.5 cents per mile (Fifty-five and a half cents) allowance for business miles that you drove.
Read more details about the mileage rate for 2012.

It changes every year and sometimes it will change mid year at the end of June - beginning of July. See how the mileage rate change in 2011 worked out.

Vacation as a deduction

This can be tricky but possible. The IRS tells us that there are ordinary and necessary expenses to consider.

Understand the definitions of both.

You could drive to Niagara Falls for a conference on your product line and then spend a few days there as a vacation.

The miles and other expenses such as per diem Food and Entertainment costs are considered fair for the time that you are at the conference only.

The other times the expenses are yours to pay with no rebate from the IRS. The miles are still OK to deduct and the other related expenses for the conference but not the expenses for the vacation.

Bosses not paying mileage expenses?

There are different methods for a boss to cover the expense of driving costs for employees. Look into the www.FAVR.cc (FAVR ) method.

There are some employers that just pay a small amount to keep you quiet but it isn't really enough to cover the costs associated with running your vehicle all of the miles.

In that case you would be better off taking a mileage allowance or deduction.

Look at this 50 page publication ( It is a PDF file) from the IRS Pub 463 for taking "Travel, Entertainment, Gift and Car Expenses", for your tax filing as it might be appropriate for you.

Also you can use the IRS form 2106-EZ to get a deduction for the "Unreimbursed Employee Business Expenses".

This is the amount that your boss isn't covering for mileage.

If he is paying you half the rate that the government allows for mileage then take the second half from the IRS on your taxes to get coverage for the full amount after all.

Interesting Examples of use variations

If you own six vehicles, say four cars and two vans and all are used in your business you can get the Standard Mileage Rate Deduction for all six vehicles as long as only four of them are ever used at a time.

If you had four trucks in your business and in the middle of the year you traded in two trucks for two new trucks. That shows six in a year but the use is only for four at a time. You can use the Standard Mileage Rate as a deduction.

 If you are self employed you can deduct the percentage of interest paid for the year that represents the same percentage of miles driven for business, but if you are an employee of a business you can't deduct interest on your car loan.

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