Business & Real Estate

IRS releases new mileage rates for deducting 2015 auto usage

The Internal Revenue Service has issued new optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes in 2015.

Beginning 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 from 56 cents in 2014; 23 cents per mile driven for medical or moving purposes, down half a cent from 2014; and 14 cents per mile driven in service of charitable organizations.

Rates are based on a number of variables, including costs of operating a vehicle, insurance, maintenance and fuel costs. The charitable rate is set by law.

Taxpayers have the option of claiming deductions based on actual costs of using a vehicle rather than the standard mileage rates. Taxpayers may not use the business standard mileage rate for a vehicle after claiming accelerated depreciation on a vehicle.

The standard rate is not available to fleet owners using more than four vehicles simultaneously.

For more information, see irs.gov.

Call The Bee’s Mark Glover, (916) 321-1184.

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