By Mary Ellen Schill
May 5, 2015
This afternoon the IRS issued the standard mileage rates for determining the deductible cost for operating automobiles for various purposes (business, medical, charitable) beginning January 1, 2015. Details can be found here. Even with declining gasoline prices, the reimbursement rate for business purposes actually will increase from 56 cents per mile to 57.5 cents. The standard reimbursement rate takes into account not just gasoline prices, but also insurance and wear and tear. Maybe the cars themselves are getting more expensive to purchase and expensive to maintain?
Anyway, employers that base employee reimbursements on the standard mileage rate will have to shell out more money next year per mile. In prior years with fuel price volatility the IRS has issued mid-year adjustments in reimbursement rates, so stay tuned.
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