The IRS announced today the 2015 optional standard mileage rates used for calculating the deduction for the costs of operating a vehicle for various business, charitable, moving or medical reasons.

Beginning January 1, 2015 the 2015 Standard Mileage Rates are:

• 57.5 cents per mile for business miles driven
• 23 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The standard mileage rate is determined using various factors such as the state of the economy, gas prices, and the estimated cost of normal wear and tear on a vehicle; thus it is intended to reimburse over and above the amounts for which someone pays strictly for gas. Learn more about determining whether to use the actual expenses incurred or the standard mileage rates.

Tips for Reducing your Fuel Consumption

The price of gas seems to always be increasing. Here are several tips to help improve your fuel economy:

• Avoid speeding up and slowing down rapidly. This can greatly lower your gas mileage by as much as 33%. Try maintaining a constant speed, cruise control helps to do this.
• Drive slower. Every 5 Miles Per Hour you drive over 60 MPH can reduce your fuel economy by up to 7%.
• Letting your car Idle can cost you $0.04 per minute. That means if you let your car warm up for 10 minutes every morning that’s $2.80 a week you’re spending on wasted fuel.
• A tune up can help improve your gas mileage by 4%.
• Clean out your car! 100 pounds of cargo can decrease fuel economy by 1-2%.
• A roof rack can be a great use of extra space but when full can reduce your gas mileage by up to 5%.

A member of the KLR Tax Services Team can assist you with expensing your travel costs or any of your year-end tax planning needs. Please contact us at trustedadvisors@kahnlitwin.com or call 888-857-8557.