Who can claim the IRS car mileage allowance?


Quick Answer

Those using their cars for business, medical, moving or charitable purposes can claim the IRS car mileage allowance to calculate deductible vehicle operating expenses, reports Forbes. Taxpayers have the choice of using standard mileage rates or the actual cost of vehicle operation to calculate deductions, states the IRS.

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Full Answer

Standard mileage rates for automobiles as of 2015 are 57.5 cents per mile for businesses, 23 cents per mile for moving and medical reasons, and 14 cents per mile for charities, according to the IRS. The business mileage rate is calculated using both variable and fixed costs of vehicle operation such as oil and gas, tires, repair, depreciation and maintenance, and insurance. The moving and medical mileage rate is based on the variable costs of oil and gas only. The charitable deduction is a fixed rate set by Congress which is not adjusted for inflation, states Forbes.

Many taxpayers use the standard mileage rates to claim deductions for vehicle operation because it is easier than calculating the cost of operating a vehicle, as reported by Forbes. Businesses are not allowed to use standard mileage rates if they claim accelerated depreciation, states the IRS. Additionally, businesses that use fleets of four or more vehicles simultaneously cannot use standard mileage rates.

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