Business, Legal & Accounting Glossary
The standard mileage rate refers to a federal tax deduction for miles driven related to charitable, business, medical, or moving purposes. Taxpayers have the option to claim either the standard mileage rate or the actual business, medical, moving, or charitable transportation-related expenses incurred. Standard mileage rate can also substitute for vehicle maintenance and repair expenses, license fees, registration fees, and insurance fees. In addition to presenting a simpler calculation, the standard mileage rate usually results in a larger deduction than do direct expenses and for that reason is claimed more often. Leased cars are eligible for the standard mileage rate, provided they are used for the aforementioned purposes over the entire period of the lease. Vehicles depreciated under the Modified Accelerated Cost Recovery System (MACRS), hired vehicles such as taxis, and vehicles used in fleet operations comprised of more than four vehicles are not eligible for the standard mileage rate. The IRS bases its standard mileage rate on data collected by Runzheimer International, a company specializing in employee mobility management.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Standard Mileage Rate are sourced/syndicated and enhanced from:
This glossary post was last updated: 5th February, 2020 | 0 Views.