Mileage Deduction Rates for 2015 Released
The 2015 Mileage Deduction Rates have been announced by the Internal Revenue Service today. Taxpayers use the mileage deduction rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
2015 Mileage Deduction Rates
Business rate per mile = 57.5¢
Medical and moving rate per mile = 23.0¢
Charitable rate per mile = 14.0¢
Depreciation rate per mille = 24.0¢
The standard mileage deduction 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. The charitable rate is based on statute.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage deduction rates. A taxpayer may not use the business standard mileage deduction rate for a vehicle after using any depreciation method, in the first year of service for that vehicle. In addition, the business standard mileage deduction rate cannot be used for more than four vehicles used simultaneously.