New 2015 Standard Mileage Rates; Business Rate to Rise in 2015
Tax Services - The
Internal Revenue Service today 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, van, pickup or panel truck will be:
- 57.5 cents per mile for business miles driven, up from 56 cents in 2014
- 23 cents per mile driven for medical or moving purposes, down half a cent from 2014
- 14 cents per mile driven in service of charitable organizations
The standard mileage rate for business is based on an annual study
of the fixed and variable costs of operating an automobile, including
depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for
medical and moving purposes is based on the variable costs, such as gas and
oil. The charitable rate is set by law.
Taxpayers always have the option of claiming deductions based on
the actual costs of using a vehicle rather than the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a
vehicle after claiming accelerated depreciation, including the Section 179
expense deduction, on that vehicle. Likewise, the standard rate is not
available to fleet owners (more than four vehicles used simultaneously).
Details on these and other special rules are in Revenue Procedure 2010-51, the
instructions to Form 1040 and various online IRS publications including
Publication 17, Your Federal Income Tax.
Besides the standard mileage rates, Notice 2014-79, posted today
on IRS.gov, also includes the basis reduction amounts for those choosing the
business standard mileage rate, as well as the maximum standard automobile
cost that may be used in computing an
allowance under a fixed and variable
rate plan.
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