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2015 Standard Mileage Rates Announced

2015 Standard Mileage Rates Announced

The Internal Revenue Service has issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car (as well as a van, pickup or panel truck) will be:

  • 57.5 cents per mile for business miles driven (includes a 22 cent per mile allocation for depreciation);
  • 22 cents per mile driven for medical or moving purposes; and 
  • 14 cents per mile driven in service of charitable organizations. 

The new rate for business is up from 57 cents per mile in 2014, while the rate for medical and moving purposes is down from 22.5 cents per mile.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study.  

The rate for charitable use of a vehicle is statutory and can only be changed by congressional action. Therefore, it is not adjusted annually and will remain at 14 cents per mile until changed by Congress.  

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

If you have questions related to the best method of deducting vehicle expenses on your tax return please, contact one of our tax professionals on www.TaxBuzz.com.

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Lee Reams, BSME, EA

Lee Reams, BSME, EA

Editor-in-Chief

Besides his role at CountingWorks as an educator and speaker to thousands of accountants nationwide, Lee manages a technical research service for a large group of tax accountants which sharpens his technical skills. Lee served on the Board of Blackline Systems, is a former Board of Director for the California Tax Education Council, is a Past President of the San Fernando Valley Chapter of Enrolled Agents, Member and Past Director for the California Society of Enrolled Agents.

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