Q: What are the standard mileage rates for 2014 and 2015?
A: 57.5 cents per mile for business miles driven, up from 56 cents in 2014
23 cents per mile driven for medical or moving purposes, down half a cent from 2014
14 cents per mile driven in service of charitable organizations
Q: If I use standard mileage rate in place of actual expenses, do I also need to figure depreciation of the vehicle?
A: You cannot depreciate the vehicle if you use the standard mileage rate.
Q: I own a business and use a vehicle for business travel. On what form and line do I deduct the standard mileage rate?
A: Many taxpayers find using the standard mileage rate an easier way to expense their vehicle. It depends on what type of business you have concerning where the mileage is taken as a deduction. Alternatively, instead of the standard mileage rate, you can use the actual expense method. If you use the actual expense method, you need to figure depreciation for the vehicle.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors