Definition of «standard mileage rate»

The standard mileage rate is a fixed amount that the IRS allows taxpayers to deduct for each mile driven while conducting business or traveling for charitable purposes. It is intended to provide an easy way to calculate and claim deductions related to vehicle expenses, without having to keep track of actual costs such as gasoline, oil changes, insurance premiums, and depreciation. The rate varies depending on the purpose of the trip (business, medical, or moving) and is adjusted annually for inflation.

Sentences with «standard mileage rate»

  • Before we kick things off, it's important to understand if you're going to make deductions based on standard mileage rates or actual expenses. (policygenius.com)
  • The 2015 standard mileage rate for auto expenses was 57.5 cents per mile. (money.stackexchange.com)
  • The expenses of a personal car or truck used for business can be deducted in one of two ways: claiming actual costs or relying on an IRS standard mileage rate. (inc.com)
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