Standard mileage rate. The standard mileage rate for the cost of operating your car in 2003 is 36 cents a mile for all business miles. Car expenses and use of the standard mileage rate are explained in chapter 4.
Special depreciation allowance. The special depreciation allowance increases from 30% to 50% for most new vehicles acquired after May 5, 2003. If the 50% allowance applies, you can choose to use the 30% allowance or elect out entirely for any class of property. See Special Depreciation Allowance in chapter 4.
Depreciation limits on cars. The total section 179 deduction and depreciation (including the special depreciation allowance) you can claim on cars (other than trucks and vans) you use for business purposes has increased for cars first placed in service in 2003. See Depreciation limits in chapter 4.
Depreciation limits on trucks and vans. Beginning in 2003, the total section 179 deduction and depreciation (including the special depreciation allowance) you can claim on a truck or van is generally higher than the amount you can claim for a car that is not a truck or van. Trucks and vans are passenger automobiles, including minivans and sport utility vehicles (SUVs), that are built on a truck chassis. See Depreciation Limits in chapter 4.
Armed Forces reservists. Beginning in 2003, if you are a member of a reserve component of the Armed Forces of the United States, you may be able to deduct some of your reserve-related travel costs as an adjustment to gross income rather than as an itemized deduction. For more information, see Armed Forces Reservists Traveling More Than 100 Miles From Home under Special Rules, in chapter 6.
Standard meal allowance. The standard meal allowance (also referred to as the limit on meals and incidental expenses (M&IE rate)) for most small localities in the United States is $30 a day from January 1, 2003, through September 30, 2003, and $31 a day from October 1, 2003, through December 31, 2003. However, the standard meal allowance is higher for most major cities and many other localities in the continental United States. See Publication 1542, Per Diem Rates. These rates (allowances/limits) are also listed in Appendix A of Chapter 41, Part 301 of the Code of Federal Regulations. You can find them on the Internet at U.S. General Services Administration. Use of the standard meal allowance is explained in chapter 1.
Information courtesy of the Internal Revenue Service.
