Driving Deductibles with IRS Standard Mileage Rates

mileage, deductible

If you’re a small business, knowing how, what and when to deduct for business use of your company vehicles can make a big difference in your tax rates at the end of the year. The Internal Revenue Service has issued its 2015 optional standard mileage rates for business, charitable, medical or moving uses. Here’s what you need to know now to make the most of the deductions. Every year, the IRS sets standard mileage rates for business based on an annual study of fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil. Rates for medical and moving purposes are based on variable costs like gas and oil. You need to keep in mind a few points when considering whether deductions apply to you: Business miles are miles you’ve driven specifically for business (e.g., to meet with a client or your accountant) Business miles are NOT miles driven between home and your workplace – those are commuting miles, and are not … [Read more...]