Tax Update

2014 Standard Mileage Rates: Beginning on 1/1/2014, the standard mileage rates for cars, vans, pickups, and panel trucks will be 56 cents per mile for business miles, 23.5 cents per mile for medical or moving purposes, and 14 cents per mile for charitable purposes. The business, medical, and moving expense rates will be down a half cent per mile from the 2013 rates, while the charitable rate is set by law and remains unchanged from last year's rate.

Charitable Contributions: The IRS reminds individuals and businesses of the rules for deducting charitable contributions. To deduct a monetary donation of any amount, the taxpayer must have written communication from the charity, or a bank or credit card statement. A taxpayer must receive written acknowledgment from the charity for donations of $250 or more. Additional reminders include: (1) contributions are deductible in the year made, including donations charged to a credit card before year end, (2) only contributions to eligible charities are deductible (the IRS has a searchable database on its website), (3) individuals must itemize their deductions to claim a charitable contribution deduction, (4) deductions for cars, boats, or planes are generally limited to the gross proceeds from their sale, and (5) a completed Form 8283 must be filed with a return claiming total noncash contributions of more than $500.