Business Mileage Reimbursement Rate
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The Business Mileage Reimbursement Rate is an optional standard mileage rate used in the United States for purposes of computing the allowable business deduction, for Federal income tax purposes under the Internal Revenue Code, at 26 U.S.C. ยง 162, for the business use of a vehicle. Under the law, the taxpayer for each year is generally entitled to deduct either the actual expense amount, or an amount computed using the standard mileage rate, whichever is greater. The Business Mileage Reimbursement Rate is also used by employers for computing employee reimbursement amounts when an employee operates an employee-owned automobile for the employer's business purposes.
The General Services Administration (GSA) sets the rate for federal jobs, while the Internal Revenue Service (IRS) sets the rate for all others. In general, the GSA rate matches the annual rate set by the IRS, although by law the rate generally cannot be higher than the rate set by the IRS.
Recent reimbursement rates:
| 1994 | 29.0 cents/mile |
| 1995 | 30.0 cents/mile |
| 1996 | 31.0 cents/mile |
| 1997 | 31.5 cents/mile |
| 1998 | 32.5 cents/mile |
| Jan-Mar 1999 | 32.5 cents/mile |
| Apr-Dec 1999 | 31.0 cents/mile |
| 2000 | 32.5 cents/mile |
| 2001 | 34.5 cents/mile |
| 2002 | 36.5 cents/mile |
| 2003 | 36.0 cents/mile |
| 2004 | 37.5 cents/mile |
| Jan-Aug 2005 | 40.5 cents/mile |
| Sep-Dec 2005 | 48.5 cents/mile |
| 2006 | 44.5 cents/mile |
| 2007 | 48.5 cents/mile |
The reimbursement is optional for non-federal jobs.
Source: IRS Document 463; Form 2106, Internal Revenue Service, U.S. Dep't of the Treasury (for applicable years); IRS Rev. Proc. 2005-78; IRS Rev. Proc. 2006-49.
[edit] External links
- Wikicpa.com Listing of standard mileage rates
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