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2015 IRS Mileage Rates Announced

2015 IRS Mileage Rates Announced

On December 10, 2014, the IRS announced the standard mileage rates for 2015. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2015 the standard mileage rates are:

  • For business use of an automobile, the rate increases to 57.5 cents per mile, up from 56 cents in 2014.
  • For medical or moving expenses, it is 23 cents per mile, down half a cent from 2014.
  • For services to charitable organizations, the rate stays the same at 14 cents per mile.

Remember, 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 more than four vehicles used simultaneously.

Instead of using the standard mileage rates, taxpayers may deduct the actual costs of using their vehicle.

Regardless of which method is used, taxpayers must always substantiate and document actual expenses and mileage if they plan to utilize this deduction.

Please contact us with your questions.