Photo via Images Money/Flickr.

Photo via Images Money/Flickr.

The Internal Revenue Service lowered the business mileage deduction by 0.5 cents to 56 cents per mile effective Jan. 1.

The 2014 rate decreases the 2013 rate of 56.5 cents, which went into effect Jan. 1, 2013. To determine the rate, the IRS worked closely with Runzheimer International, which has provided annual vehicle cost data to the IRS since 1980.

"The decrease in the mileage rate for 2014 reflects slightly lower fuel costs as well as lower vehicle cost components, such as depreciation," said Cris Robinson, Runzheimer's research analysis supervisor. "The data Runzheimer collects highlights the shifts in market conditions nationwide and enables the IRS and other organizations to make more informed business decisions related to vehicle costs."

Taxpayers can deduct 56 cents per mile for vehicles expenses on their 2014 tax return.

Related:

IRS to Focus on Auditing Fleets for Personal-Use Reporting & Compliance

Originally posted on Automotive Fleet

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