Standard Mileage Rates for 2004

The IRS recently released the optional standard mileage rates for 2004 for employees, self-employed individuals, or other taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes and expanded the business standard rate option so that more businesses may now be eligible to use the standard mileage rate. 

Beginning January 1, 2004, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) will be:

1. 37.5 cents a mile for all business miles driven, up from 36 cents a mile in 2003
2. 14 cents a mile when computing deductible medical or moving expenses, up from 12 cents a mile in 2003

3. 14 cents a mile when giving services to a charitable organization.

The IRS has also made an important change this year: Starting in 2004, taxpayers who use no more than four vehicles at the same time for business purposes may use the standard mileage rate. Currently, taxpayers using more than one vehicle at a time cannot use the standard rate at all, which leaves them to track the actual expenses for each vehicle.

To contact Feeley & Driscoll, please click here or call us at 1 (888) 875-9770.