Beginning Jan. 1, 2015, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) is:
- 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
You always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
You may not 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 more than four vehicles used simultaneously.
If you would like to learn more about this tax strategy, please call Susan at 847.895.9880.