Standard Mileage Rates for 2013

[Elrod]

Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

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

http://www.irs.gov/u...ical-and-Moving

[TaxMan60601]

http://www.irs.gov/u...ical-and-Moving

" ... In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously."

It is clear that it is okayed in the name of the Small Business but besides possible big discrepancies in reporting when using SMR or actual expenses method for more than 4 vehicles, I wonder why actually the business standard mileage rate cannot be used for more than four vehicles used simultaneously?

Any info/thoughts shared will be more than welcome

[Lion EA]

It's not logical; it's the law!

[kcjenkins]

Aside from the logic that any business using 5 or more vehicles at the same time should be business-like enough to keep proper records, as well as the issue you mention, you also have to remember that tax code is written by committees, Taxman. Just remind yourself that a camel is a horse designed by a committee and you will stop looking for logic There is some in there, but it's by accident. LOL

[jainen]

>>why actually the business standard mileage rate cannot be used for more than four vehicles used simultaneously<<

That's not actually in the code or regs, which say you have to substantiate actual expenses. But they allow the IRS to make up its own rules. "The Commissioner may, in his or her discretion, prescribe rules in pronouncements of general applicability under which allowances for expenses described in paragraph (g)(2) of this section will, if in accordance with reasonable business practice, be regarded as equivalent to substantiation by adequate records or other sufficient evidence, for purposes of paragraph ( c) of this section, of the amount of the expenses and as satisfying, with respect to the amount of the expenses, the requirements of an adequate accounting to the employer for purposes of paragraph (f)(4) of this section." [1.274-5(g)]

So the answer to your question is simply that the IRS considers it reasonable business practice, and all that other gobbledygook.