2004 Standard Mileage Rates Announced by IRS
The IRS has announced the rates for mileage expense deductions beginning January 1, 2004. The new standard business mileage rate will be 37.5 cents per mile (up from 36 cents per mile for 2003). The charitable rate will be 14 cents per mile (same as for 2003) while the medical and moving rates will be 14 cents per mile (up from 12 cents per mile in 2003).

Note the following changes in the application of the standard mileage rate:

• Starting with calendar year 2004, taxpayers can use the standard mileage rate for up to four vehicles used simultaneously. Previously, the rate was not permitted if a taxpayer had two or more vehicles used simultaneously.
• The standard mileage rate still CANNOT be used to determine the expenses for automobiles used for hire, such as taxicabs, or when five or more automobiles are used simultaneously in a taxpayer's business.