The business mileage reimbursement rate is an optional standard mileage rate used in the United States for purposes of computing the allowable business deduction, for Federal income tax purposes under the Internal Revenue Code for the business use of a vehicle. Under the law, the taxpayer for each year is generally entitled to deduct either the actual expense amount, or an amount computed using the standard mileage rate, whichever is greater.
If you use your personal vehicle for business purposes and plan to use the Standard Mileage Rate, begin a good New Year's habit of keeping a mileage log to document your business use.
First step, RECORD THE BEGINNING OF THE YEAR MILEAGE. Yes, it's the 11th already, but better record today late, than not at all.
The Standard Mileage Rate for 2015 is 57.5 cents per mile for business use. (Charitable and moving rates do not change year-to-year.)
SUGGESTION: If you unsure whether you will have a large deduction using the Standard Mileage Rate or by deducting actual expenses, you can keep records, compare at the end of the year, and use whichever method gives the larger deduction.
