Standard Mileage Rate


Also found in: Acronyms.

Standard Mileage Rate

A small amount (less than $1) that one is allowed to deduct from one's income for business use of a vehicle. The standard mileage rate is multiplied by the number of miles that the vehicle is driven for business use. This is used in lieu of deducting actual expenses (such as gas and maintenance) on the vehicle.
References in periodicals archive ?
However, the standard mileage rate cannot be used for a vehicle placed in service in a prior year if actual expenses were deducted in that prior year.
Starting Jan, 1, the standard mileage rates for the use of a car (in addition to vans, pickups, or panel trucks) will be 56 cents per mile for business miles driven, 23.
The Internal Revenue Service announced an increase to the optional standard mileage rates for the final four months of 2005, due to climbing fuel prices.
2006-49 sets the 2007 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Despite the recent increase in gasoline prices, the standard mileage rates have not increased for 1993.
Many taxpayers choose the simpler standard mileage rate approach, so this year it's important to remember that there was a higher rate in effect for the last half of 2008.
Medical and moving mileage: The standard mileage rate for medical or moving expenses has been increased to 18 cents per mile.
Drivers should be aware that the optional Standard Mileage Rate has decreased to 31 cents for each business mile.
The optional business standard mileage rate is used as a safe harbor number to compute the deductible costs of operating an automobile for business use instead of using receipts to track actual costs.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.
Filers who take a new job and have to relocate can deduct qualified moving expenses not reimbursed by the new employer, such as moving household goods and personal items (including in-transit or foreign- move storage expenses), lodging costs when traveling to the new home, and car-related expenses like gas and oil or the standard mileage rate for moving of $.
2005-71, the optional standard mileage rate increased 8 cents, to 48.

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