IRS Issues New Standard Mileage Rates

This week the Internal Revenue Service issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating autos for business, charitable, medical or moving purposes.

Starting on January 1, 2015, the standard mileage rates for cars, vans, and trucks will be:

• 57.5 cents per mile for business usage, up from 56 cents in 2014
• 23 cents per mile for medical or moving purposes, down from 23.5 cents in 2014
• 14 cents per mile for auto usage in service to charitable organizations, unchanged from 2014.

You have the option of claiming deductions based on the actual costs of using your vehicle or utilizing the standard mileage rates. The actual costs of your vehicle would include items like depreciation, insurance, and repairs. Please keep in mind that you cannot use the business standard mileage rate for a vehicle if you’re already claiming actual costs like depreciation, which includes the Section 179 expense deduction.