Beginning on Jan. 1, 2015, the IRS will allow the following standard mileage rates for the use of a car, van, pickup or panel truck:
- 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
- 14 cents per mile driven in service of charitable organizations
As per normal practice, the IRS determines this rate by factoring in the average fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil.
As an alternative to claiming the standard mileage rate, taxpayers may elect to claim as a deduction the actual costs of using a vehicle. We would be happy to discuss which option may be best for your specific situation.