IRS Mileage Rates for 2015 --How does this affect you?

By
Real Estate Agent with RE/MAX AllStars SL 3252654

The standard mileage rate for federal income taxes is rising next year for business use, even though gas prices have gone down.

The IRS issued its 2015 optional standard mileage rates. Beginning Jan. 1, 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 (an increase from 56 cents in 2014)
  • 23 cents per mile for medical or moving reasons (a decrease of half a cent from 2014)
  • 14 cents per mile driven in service of charitable organizations

The rates go into effect for the 2015 calendar year, making them applicable for deductions on 2015 tax returns – the ones U.S. taxpayers file in 2016. The 2014 rates apply for tax returns submitted early next year.

At the same time the IRS released the higher per-mile rate, a separate government agency, the U.S. Department of Energy, released its predictions for the price of gasoline next year. It estimates that gas prices will likely average $2.60 a gallon next year – the lowest full-year average since 2009.

Source: "IRS Announces 2015 Standard Mileage Rates," Forbes.com (Dec. 10, 2014)

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Comments (4)

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     Given the current decrease in gasoline prices, this is a great deduction for those who rack up a lot of mileage on business trips.

Dec 16, 2014 06:32 AM
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Jeffrey Riegel Thanks for sharing this information,  and more of us probably need to track out mileage a little better. ;-)

Dec 16, 2014 07:01 AM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Jeffrey - Thanks for the helpful information on IRS mileage rates for 2015.

Dec 16, 2014 11:47 AM
Michael Dagner
Brokers Guild Classic - Denver, CO
Your Denver Homes Realty Expert

Jeffrey, thanks for the info.  Was just thinking about this the other day.  If gas prices keep dropping though, we'll surely see a drop in those IRS rates for 2016.

Dec 16, 2014 01:08 PM