The Internal Revenue Services has issued the new optional standard mileage rates for 2015. These are the rates that are to be used to calculate deductible costs associated with the operation of a vehicle.
These standard mileage rates for business purposes are based on an annual study that is conducted to assess the fixed and variable costs of operating a vehicle. This study takes into account gas, maintenance, oil, insurance, tires, and depreciation of the vehicle’s value. The rates for medical or moving purposes are based only on variable costs like gas and oil. The rate for charitable uses is set by law.
As of January 1st, 2015, the standard mileage rates for cars, vans, pickups, or panel trucks will be as follows:
- 57.5 cents per mile driven for business purposes, up from the 56 cents in 2014
- 23 cents per mile driven for moving or medical-related purposes, down .5 cents from 2014’s rate
- 14 cents per mile driven for the purposes of a charitable organization
Taxpayers can choose to claim a deduction based on the actual costs of operating their vehicle, rather than taking a deduction based on standard mileage rates.
Taxpayers who use the business standard mileage rate for a vehicle after claiming accelerated depreciation on the same vehicle. The standard rate cannot be used by fleet owners who operate more than four vehicles at the same time. You can learn more by visiting the IRS website. Should you require any further information, or should you need any help on your taxes, please contact Seattle CPA Alisa Na during normal business hours.