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For 2015, the standard mileage rate will increase from 56 cents to 57.5 cents. If you own your own business and take your auto expense deduction based on the number of miles you drive you will benefit from this tax deduction, even if the increase is primarily supposed to cover standard vehicle costs.
See IRS update: IRS Standard Mileage 2015
Mileage deductions can only be taken for vehicles that your business does not own, otherwise you must take the actual costs for fuel, maintenance, repairs and applicable depreciation to compute your auto expense for the year. It is important to way out the advantages or having a vehicle in the company’s name or your own. Make sure to consult with your tax professional before making your next purchase, most of the time it all depends on the insurance required on vehicle, if employees have access to use vehicles, legal liabilities and how often you buy new vehicles and their costs.
Fun facts! You can also write off your vehicle mileage for other things when doing you individual taxes. Rates include any medical-related mileage is 23 cents and for service of charitable originations is 14 cents. Although it may seem relatively small, every little bit counts when you trying to get your maximum tax benefit for the year.
Always keeping you updated,
The W. H. O’Connell & Associates Team