2014 Standard Mileage Rates Announced

By SHRM Online staff Dec 9, 2013

Standard Mileage Rates for 2015

On Dec. 11, 2014, the issued Notice 2014-79: Standard Mileage Rates for 2015, providing that the standard mileage rate for transportation or travel expenses starting on Jan. 1, 2015, will be:

57.5 cents per mile for all miles of business use (business standard mileage rate).

14 cents per mile for use of an automobile in rendering gratuitous services to a charitable organization under Section 170.

23 cents per mile for use of an automobile for medical care described in Section 213, or as part of a move for which the expenses are deductible under Section 217.

To learn more, see the SHRM Online article 2015 Standard Mileage Rates Announced.

The 2014 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes, were issued by the Internal Revenue Service in December 2013.

IRS Notice 2013-80 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan. Other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical, or charitable expense are in Revenue Procedure 2010-51.

The 2014 rates apply to tax returns filed in 2015. The 2013 rates are effective for returns filed in 2014.

Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56 cents per mile for business miles driven
  • 23.5 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The business, medical, and moving expense rates decrease one-half cent from the 2013 rates. The charitable rate is based on statute.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

Special Per Diem Rates for Travel Begin in October 2014

IRS Notice 2014-57 provides the 2014-2015 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home, specifically (1) the special transportation industry meal and incidental expenses (M&IE) rates, (2) the rate for the incidental expenses only deduction, and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method.

Beginning Oct. 1, 2014, the high-low per diem rates that can be used for lodging, meals and incidental expenses will increase to $259 for travel to high-cost locations and $172 for travel to other locations. The high-low M&IE rates will remain at $65 for travel to high-cost locations and $52 for travel to other locations.

The notice was issued on Sept. 19, 2014.

Related SHRM Article:

Do we have to reimburse personal auto mileage for business-related trips?, SHRM HR Q&As, December 2012

Related External Article:

IRS Announces 2014 Standard Mileage Rates, Forbes, December 2013


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