In December, the IRS announced updated mileage rates for 2015 in Notice 2014-79. The following excerpt gives the rates for business, medical and moving, and charitable miles driven.
Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 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
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.
Taxpayers always have the option of claiming deductions based on the actual costs of using a vehicle rather than the standard mileage rates.
Assuming that oil prices don't recover from the drastic decrease over the past month, it is quite likely that these rates will be adjusted downward on July 1. Either way, if you plan to claim deductions for use of your vehicle, be certain to keep good records. There are a number of apps that you can use for this, although I have not personally tried any.