2015 Standard Mileage Rates

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The IRS recently published the standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

It is relevant to point out that taxpayers who uses the mileage rate may not also be allowed to use actual automobile expenditures. Some people calculate both the mileage rate and the actual expendtures to see which one is more beneficial. However, they are rules that needs to be taken into consideration in their application.

These are the 2015 mileage rates by category:

For charity...the mileage rate is 14 cents/mile.
For business...the mileage rate is 57.5 cents/mile.
For medical...the mileage rate is 23 cents/mile.
For moving...the mileage rate is 23 cents/mile.

Limitations to consider:
1-The maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan.
2-Reduction on basis of depreciation taken.

Efective date:
January 1, 2015


Source: IRS.gov