The IRS posted new standard mileage rates for 2015 that can be used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes. The new mileage rate for business-related driving is up, but mileage for medical and moving is slightly lower than in 2014. The rate for charitable driving remains unchanged.
Beginning January 1, 2015, the standard mileage rates are as follows: 57.5 cents per mile for business miles driven, 23 cents per mile driven for medical or moving purposes, and 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.
Before you calculate any deduction, make sure you qualify. The IRS reminds taxpayers that they cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire, or for more than four vehicles used simultaneously.
Remember, you don’t have to use the standard rate. Although the IRS provides the standard mileage rate for ease and convenience, you’re not required to use it. If you choose, you have the option of calculating the actual costs of using your vehicle instead of using the standard mileage rates. Keep that in mind as you calculate your automobile usage for business, medical, moving or charity driving in 2015.