Beginning on January 1, 2015, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
• 57.5 cents per mile for business miles driven
• 23 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations
The business expense rates increased 1.5 cents per mile from the 2014 rates while the medical and moving expense rates are down 0.5 cent per mile from the 2014 rates. The charitable rate is set by law and remains unchanged from last year’s rate.
The portion of the business standard mileage rate treated as depreciation is 23 cents per mile for 2012 and 2013, 22 cents per mile for 2014, and 24 cents per mile for 2015. When computing the allowance under a Fixed and Variable Rate (FAVR) plan, the standard vehicle cost cannot exceed $28,200 for autos or $30,800 for trucks and vans.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
For more information, contact BiggsKofford at (719) 579-9090.