IRS Bumps 2013 Standard Mileage Rates by a Penny per Mile
The IRS announced last week (IR-2012-95) a penny per mile increase in the standard mileage rate for business and medical or moving purposes.
For business purposes, the rate increases from 55.5 cents per mile to 56.5 cents per mile (don’t ask me why they do not round it to the nearest penny).
For medical or moving purposes, the rate increases from 23 cents per mile to 24 cents per mile.
The charitable rate remains at 14 cents per mile.
The business rate is based on an annual study of the fixed and variable costs of operating an automobile. Taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates ( I would guess that most farmers use this method rather than the standard mileage rate).
Paul Neiffer, CPA
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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