Even thought fuel prices continue to decline, and are approaching $2,00 a gallon. The mileage rate for 2015 is 57.5 an increase from 56 cents per mile in 2014. This is the rate to use foe business miles.
The rate for medical and moving mileage will decline in 2015 to 23 cents a mile.
The rate to use when using your vehicle related to charity is set by congress (not the IRS) and remains at 14 cents per mile.
Should you have questions, you should contact BDS, or your tax professional.
If you use your vehicle for business – or medical, or moving, or in service of charitable organizations the IRS has issued new optional standard mileage rates for 2014. The rate for business use is 56 cents per mile. This is a decline from the 2003 rate of 56.5 cents per mile. The business rate can be used by those taxpayers using their personal vehicle in a business they operate or if they work for a company that does not reimburse them for using their personal vehicle. This does not apply to commuting mileage to and from their primary job to their residence. Taxpayers must maintain adequate records (a log indicating dates, miles driven, and business purpose of each trip). Taxpayers have the option of using actual costs including depreciation, fuel, maintenance, insurance etc.
If the actual expense method is used, actual expense must be reduced for any personal mileage used. The rate for medical and moving has also been reduced .5 cent. the new rate is 23.5 cents per mile. Medical mileage includes doctor, lab and hospital visits, even picking up medicine.
However medical mileage is part of total medical deductions which now only the amount over 10% of adjusted gross income is deductible. Moving mileage must be associated with a new job or job transfer to be deductible. There is no change in the mileage rate for vehicles in the service of charitable organizations. The charitable rate which was established by Congress and remains at 14 cents per mile.
Effective January 1, 2013 mileage rates allowed will change. Mileage rates allowed for business use of vehicles will increase back to 56.5 cents per mile.
Medical and Moving mileage rates will be 24 cents per mile. The rate for using vehicles for charitable causes is established by Congress – and remains at 14 cents per mile. For additional information on this tax law or other tax issues please contact us @ 816-454-5057 or firstname.lastname@example.org