IRS Mileage Rate Calculation Example
Your total car mileage for the 2014 tax year was 18,364 miles, of which 7,162 were for personal use and 11,202 were for business. To figure the IRS mileage rate deduction, you would multiply 11,202 miles by the standard 2010 IRS mileage rate for business from the table above (50 Cents /mile).
11,202 Miles x .56 = $6,273
This is your business car deduction using the irs mileage rate method.
Note: When using the IRS mileage rate method, keep in mind that the IRS mileage rate includes all costs for operating the car,including gas, wear and tear, depreciation, etc. The standard IRS mileage method does not include parking and tolls; you may claim these deductions on your tax return in their
You should also know that not every taxpayer can use the standard IRS mileage rate. More on this a little later in these pages (see link in the paragraph below).
Now that you know a little more about the IRS mileage rate method, you might still have questions. Perhaps you are wondering whether or not you qualify for the standard IRS mileage rate. Also, although the IRS mileage rate method is simple to use, some people find that they are better off not using it. Fore more information, see: Should I use the standard IRS mileage rate method? If you are a subscriber to the Biztax Bits (see link on the left hand navigation bar), I will let you know when the IRS mileage rate changes.