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Article added or updated:
03/30/2008 |
2005 Standard Mileage Rates Set By IRS
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Related Article:
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2004 Mileage Rates - Use for 2004 Return
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From the IRS web site
IR-2004-139, Nov. 17, 2004
WASHINGTON — The Internal Revenue Service today released the optional
standard mileage rates to use for 2005 in computing the deductible costs
of operating an auto for
business, charitable, medical or moving
expense purposes.
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Beginning Jan. 1, 2005, the standard mileage rates for the use of a car
(including vans, pickups or panel trucks) will be:
40.5 cents a mile for all business miles driven, up from 37.5 cents a
mile in 2004;
15 cents a mile when computing deductible medical or moving expenses, up
from 14 cents a mile in 2004; and
14 cents a mile when giving services to a charitable organization.
The 3-cent increase in the business mileage rate was the largest
one-year rise ever. The primary reasons were higher prices for vehicles
and fuel during the year ending in September. The charitable standard
mileage rate is set by law.
The standard mileage rates for business, medical and moving purposes are
based on an annual study of the fixed and variable costs of operating an
auto. An independent contractor, Runzheimer International,
conducted the study for the IRS.
A taxpayer may not use the business standard mileage rate for a vehicle
after using any depreciation method under the Modified Accelerated Cost
Recovery System (MACRS), after claiming a Section 179 deduction for that
vehicle, for any vehicle used for hire, or for more than four vehicles
used simultaneously. Revenue Procedure 2004-64 contains additional
information on these standard mileage rates.
Please be advised the 2005 mileage rates
have been increased.
UPDATE - 2005 Mileage Rate
Incease
Related Article:
2004 Mileage Rates - Use for 2004 Return
IRS E-file
IRS E-file Step by Step
IRS E-file Basics
E-file on your PC
IRS Free File
IRS Free
File FAQ
2005 Tax Changes |
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