IRS Announces 2004 Standard Mileage Rate

The Internal Revenue Service (IRS) has released Rev. Proc. 2003-76 announcing the optional standard mileage rates to use for 2004 in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes.  To reduce a record keeping burden, the IRS also announced that taxpayers who use no more than four vehicles at the same time for business purposes may use the standard mileage rate, starting in 2004. Currently, those using more than one vehicle at a time cannot use the standard rate at all, leaving them to track the actual expenses for each vehicle.  Beginning January 1, 2004, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) will be:  37.5 cents a mile for all business miles driven, up from 36 cents a mile in 2003; 14 cents a mile when computing deductible medical or moving expenses, up from 12 cents a mile in 2003; and 14 cents a mile when giving services to a charitable organization.  The full text of Rev. Proc. 2003-76 is on NATP's website at http://www.natptax.com/what_s_new.html under "What's New".