006.05.04 Ark. Code R. § 002 - Regulation 2004-2 - Standard Mileage Rates for Income Tax Purposes

Summary Statement

This rule increases the optional standard mileage rates effective January 1, 2004, as follows:

1. From 36¢ in 2003 to 37.5¢ for 2004 for employees or self-employed individuals.
2. From 12¢ in 2003 to 14¢ in 2004 for transportation expenses deductible as medical or moving expense.

This rule maintains the optional mileage rate of 14¢ for 2004 as 2003 for individuals in computing the income tax deduction for charitable organizations.

This rule adopts the Internal Revenue Service standard mileage rate for business use of a vehicle by a rural mail carrier.

REGULATION 2004-2

Standard Mileage Rates For Income Tax Purposes

The Commissioner of Revenue, pursuant to his authority under Ark. Code Ann. §§ 26-18-301 and 26-51-423(a)(3), does hereby issue the following regulation:

The optional standard mileage rate, for use by employees or self-employed individuals in computing the income tax deductible costs of operating passenger automobiles owned by them for business purposes, is thirty-seven and one half cents (37.5¢) per mile for expenses paid or incurred during the 2004 calendar year.

The optional mileage rate for use by individuals in computing the income tax deductible costs of operating passenger automobiles owned by them for a charitable organization is fourteen cents (14¢) per mile.

The optional standard mileage rate allowed in computing the cost of operating a passenger automobile where transportation expenses are deductible as a medical or moving expense is fourteen cents (14¢) per mile.

The standard mileage rate for business use of a vehicle by a rural mail carrier as set by the Internal Revenue Service for tax year 2004 is hereby adopted. Reimbursement for a carrier's mileage shall be treated as a payment from a qualified plan. As such, mileage reimbursement will be excluded from a carrier's gross income. However, a carrier will not be allowed to deduct vehicle-related expenses incurred while working as a rural mail carrier.

The mileage rates stated above shall be in effect for tax years beginning on and after January 1, 2004

Issued this ______ day of _____________ 2004 in the City of Little Rock, Pulaski County,

Arkansas.

______________________________

Richard A. Weiss, Director Department of Finance and Administration

_________________________________

Tim Leathers, Commissioner of Revenue Department of Finance and Administration

Notes

006.05.04 Ark. Code R. § 002
8/6/2004

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