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SEARCHWASHINGTON - The new IRS mileage reimbursement rate reflects an increase of 1 cent, up from 55.5 cents per mile in 2011 and 2012.
WASHINGTON – The Internal Revenue Service (IRS) has changed the 2013 optional standard mileage reimbursement rates to 56.5 cents per mile for business miles driven. This is an increase of 1 cent, up from 55.5 cents per mile in 2011 and 2012.
The IRS also changed reimbursement miles for medical or moving purposes to 24 cents per mile, and to 14 cents per mile driven in service to a charitable organization. The new rates go into effect Jan. 1, 2013.
The IRS added that a taxpayer can’t use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
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