2015 Mileage Rates Released by IRS
Every year, business owners who use an automobile for business driving, deduct the actual expenses attributable to their business use. In doing so, a business owner must choose between writing off automobile expenses by either taking the actual expenses incurred or taking a standard mileage rate. Either option requires the business owner to keep track of particular data, in order to claim the expense on their tax return. With the recent decrease in gas prices, it might be advantageous to review the following options:
Option 1: Deduction of Actual Expenses: This option includes keeping track of expense such as gas, oil, tires, insurance, repairs, licenses, and registration fees. Vehicle depreciation may also be claimed against the vehicle.
Option 2: Mileage: This option requires the record keeping of actual mileage and destination for each business trip, as well as the names, dates and relationship of the business trip.
Individuals may also benefit from keeping track of their mileage for medical miles, volunteering miles and miles driven when relocating.
Each year, the IRS publishes mileage rates based on a study of fixed and variable costs of operating an automobile. As with all IRS regulations, certain limitations may apply to your situation.
For 2015, the rates are as follows:
If you have specific questions regarding how deducting mileage expenses affects you, contact your tax adviser.