The Internal Revenue Service has just released its standard mileage rates for 2015, which help taxpayers figure out their tax-deductible costs of using an automobile for work, charity, moving or medical purposes.
The new rates will take effect on Jan. 1.
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 1.5 cents from 2014.
- 23 cents per mile driven for medical or moving purposes. That’s down from 23.5 cents in 2014.
- 14 cents per mile driven in service of charitable organizations.
The rates change because, each year, the IRS studies how much it costs to actually operate an automobile, and that report factors in depreciation, insurance, repairs, gas and other expenses. The charitable rate, however, is established by law.
Other rules surrounding the IRS standard mileage rates:
- Taxpayers have the choice of claiming deductions based on the real costs of using an auto instead of the standard mileage rates.
- A taxpayer can’t use the business standard mileage rate for an auto after claiming accelerated depreciation on that vehicle.
- The standard rate is not accessible to fleet owners, who have more than four vehicles in use at the same time.
