New Standard Mileage Rates for 2004

Beginning Jan. 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.

Charitable rate is 14 cents per mile (same as for 2003). Medical and moving rates are 14 cents per mile (up from 12 cents per mile for 2003).

Business 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 the burden of tracking the actual expenses for each vehicle. But, remember, burden or no burden, you can still choose to use the ‘actual expense’ method of calculating your vehicle expenses if that method produces a larger deduction.

And, you have to maintain a vehicle mileage log for each vehicle, regardless of the method you use to calculate your vehicle deduction.

*Please visit our updated FAQ page for detailed
answers to some of our more commonly asked questions.