2004 IRS Mileage Rates
IRS has gotten faster in releasing its standard mileage rates. They just announced what they will be for 2004. Employers and others who base their company rates on the IRS's have plenty of time to set things up for next year.

The optional standard mileage rate for business use of an automobile (including vans, pickups and panel trucks) in 2004 will increase to 37.5 cents a mile from the 36 cents this year. You can also use this rate to calculate business-travel deductions instead of figuring out your actual costs.

As I've mentioned several times before, IRS bean counters long ago discovered that vehicles use less fuel and depreciate less when driven for charitable or medical purposes, as well as when you are moving your residence. Their official standard rate for using an auto for medical reasons, or for calculating deductible moving expenses, will increase to 14 cents a mile next year from 12 cents this year.

However, the standard rate will remain at 14 cents a mile when using your vehicle on behalf of charitable organizations. This is another example of the fact that, while deductions for charitable deductions are useful, those costs can generally save you twice as much in taxes if they can be deducted on your business schedule.
- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 10/15/2003 10:35:00 PM Send this post: