Just when you think the IRS only does what it can to push money out of your pocket, they send out a public notice that will give business owners a tax deduction boost in 2015 when it comes to the business use of a vehicle.
A whopping $0.015 increase PER business mile to be exact. Woohoo!
(hey, EVERY penny really does count to us) 🙂
You would have claimed a $336 business mileage deduction at $0.56 per mile that will equate to a $599.42 deduction for your 2015 tax year.
This is an increased tax deduction of $263.42 for the year!
See why we say PENNIES matter??
Now, imagine if you were an on-the-go business owner or an online retailer sourcing it up at let's say a mere 50 miles per WEEK.
that's only 7.142 miles per day peeps….
At 2,600 total business miles driven for the year your estimated business mileage tax deduction for 2015 at $0.575 cents per mile will equal $1,495.
It's important to note that you can elect a standard mileage deduction or take actual expenses such as gas, tires, oil changes, repairs, etc.
Mileage reimbursement also extends to medical and charitable contribution miles driven, not just business miles.
Make sure you fully understand what you can and cannot do, along with what's best for your own personal and/or business situation as there is no one size fits all answer when it comes to accounting, taxes, and finances.
Please connect with your accountant or tax preparer to know what options are best for you. Rules, limitations, and exceptions ALWAYS apply.
2015 Business Mileage Rate +
- 2015 business mileage rate is $0.575 per mile compared to $0.56 in 2014.
- Medical mileage rate is $0.23 per mile for 2015 compared to $0.235 in 2014.
- Charitable contribution mileage for 2015 remains unchanged at $0.14 per mile.
When claiming a mileage deduction, as with any deduction, documentation is very important. A simple mileage log that outlines the date, where you went, miles driven, and for what purpose is sufficient.
You can also use a GPS-enabled mobile app that makes all the different kinds of miles you drive a cinch to track. The two we recommend at The Bottom Line are MileBug and TripLog (our favorite). Free and premium versions of the apps are available.
So, do you keep track of your mileage? Share some tips + tricks to staying on top of this money-saving task in the comments.