As year-end approaches, it is that time of the year to update your records and plan ahead for mileage reimbursement rates. The IRS has announced the mileage rate updates effective January 1, 2015.
The standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 57.5 cents per mile for business miles driven
- 23 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The rate for business miles driven is an increase by 1.5 cents from the 2014 rate. The business mileage rate can also be used by employers to provide tax-free reimbursements to employees who supply their own automobiles for business use, under an accountable plan, and to value the personal use of certain low-cost employer provided vehicles. The medical and moving related mileage rate is a decrease by one-half cent per mile from the 2014 rate.
Please contact BSSF or your tax advisor if you have any questions regarding mileage reimbursement rates.
ABOUT THE AUTHOR
John P. Weidman, CPA
John is a Principal with Brown Schultz Sheridan & Fritz and oversees the Camp Hill office’s Small Business Accounting Services (SBAS) team, which provides personal attention and assistance in accounting, payroll, and other business services to closely held businesses. The SBAS team at the Camp Hill office primarily serves the Harrisburg/Hershey region of Central PA.