The IRS is scrutinizing your Automobile expenses on your 2014 return, so BE CAREFUL. Make sure your log is accurate, and your mileage corresponds with the service record dates, which will be asked for if you are audited. You can’t deduct travel to your office, or from your office to your home, so make sure your miles match the distance from point to point in-between. Thanks to Google Maps, the IRS can use your own appointment log against you, if you fudge your trip using “long haul” math. You can deduct the tax charges on your vehicle registration within the same year.

It’s .56 a mile for 2014 IRS Standard Mileage Rates

Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 56 cents per mile for business miles driven
• 23.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The business, medical, and moving expense rates decrease one-half cent from the 2013 rates.  The charitable rate is based on statute. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. A taxpayer may not 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. These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical, or charitable expense are in Rev. Proc. 2010-51.  Notice 2013-80 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

TAX TIPS from Norm the Tax Guy include the following…

Norm is also offering anyone in Las Vegas, Henderson or N. Las Vegas, who had Jackson Hewitt, H&R BLOCK or Liberty Tax do their 2013 return, a 50% off deal. No Games. No Tricks. No WAITING. Call for an appointment 702-982-7225, ask for Norm. Simply make an appointment and bring last years return with you and he will charge you HALF what they did last year.* 401k and Ira withdrawals which usually carry a 10% penalty… Short Sale and Foreclosure rules for 2014. Affordable Care Act purchases through the Nevada (your state) health exchange. Sales tax savings if you live in a state like NEVADA, with no personal income tax! *Personal returns only. ———————————————————— Sarah Lee is an automotive specialist and car consumer advocate. She writes on all topics car related. Advice is free with MyCarlady.  ]]>