The Internal Revenue Service issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Following are the three big categories that are covered, each with a different amount of money per mile. Beginning on January 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
- 23 cents per mile for medical or moving miles driven
- 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.
If using Mileage Allowance, you may also deduct the following expenses:
- Applicable registration fees and taxes (by percentage of business use)
- Parking fees and tolls (during business use)
- Loan interest that you might have on a car (by percentage of business use)
If using Mileage Allowance, you can not deduct the following:
- Lease payments
- Actual auto expenses
Taxpayers always have the option of claiming deductions based on the actual cost of using a vehicle rather than the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any accelerated depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. The standard rate is not available to fleet owners (more than four vehicles used simultaneously). Details can be found in Revenue Procedure 2010-51 and various IRS online publications.