Internal Revenue Service Increases 2013 Mileage Rates

IRSGood news for those who deduct automotive transportation on their taxes: this year the rate associated with each mile driven is going up. Though this is a slight change to the tax code, it will mean improved deductibility for various categories of business and personal travel. Since transportation costs are so high, transporting a vehicle professionally is one way to reduce upfront expenses.

Starting In 2013!

This new rate applies to the 2013 tax year, so the positive affect will not be felt for 2012 returns prepared for April. All changes go into effect the first of the year for those submitting quarterly returns or wishing to calculate in advance. If you choose to move a vehicle and want to lower car transport rates, try a comparative quoting engine.

Deductions All Around

Any miles associated with business are increasing from 55.5 (the 2012 figure) to 56.5 cents. Though a penny seems small, when applied to all mileage throughout the year, the deduction increase could be substantial. If you want substantial reductions in auto transport costs, look at third-party transport assessments.

Mileage deductibility for medical travel, listed at 23 cents for 2012, is likewise being increased a penny to 24 cents for the 2013 tax year.

Deductions for moving are being affected identically to medicine – up to 24 cents – for those who are planning to relocate during the coming year.

Mileage related to charity is unfortunately remaining the same. It will stay at its 2012 deduction level of 14 cents. To be clear, this category applies to any miles logged in the name of an organization for the purposes of charity work.

Study Conducted by the IRS

The reason the rates are increasing is due to a study conducted by the Internal Revenue Service each year to determine average expenses related to driving. The IRS releases its new figures at the beginning of each year following an analysis of the study’s results. Car transport costs, on the other hand, adjust constantly with the market, so consider various options.

These new deduction rates relate only to those choosing the standard deduction option for driving expenses. The IRS also allows businesses and applicable individuals to perform an actual deduction – which explicitly tracks the true costs throughout the year.

Our Transporters are Happy!

If you need to find a company to transport a vehicle during 2013, compare professional and reliable companies in one place. You can either get an instant quote through our web form at the top or call us for assistance at (800) 595-2062.