The IRS announced today (Wednesday, December 10, 2014) the optional standard mileage rates that are used for using a car for business, charitable, medical, or moving purposes. Even though gas prices are declining, the deductible amounts are up, as outlined in Notice 2014-79.
The IRS announced today (Wednesday, December 10, 2014) the optional standard mileage rates that are used for using a car for business, charitable, medical, or moving purposes. Even though gas prices are declining, the deductible amounts are up, as outlined in Notice 2014-79. The new amounts are as follows:
How does the IRS calculate these rates? They are calculated based on an annual study of fixed (auto payments, etc.) and variable (gas prices, maintenance, etc.) costs of operating a motor vehicle. This includes things like depreciation, insurance, repairs, tires, and oil changes, in addition to the examples above. The charitable rate is set by law, which is why it is unchanged from 2014 to 2015.
There are some exceptions to these rates. A taxpayer is not able to use the business standard mileage rate for a vehicle after claiming accelerated depreciation on that vehicle. The standard rate is also not applicable to fleet owners.
For more information on exceptions to the standard rates, please click here.
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