The IRS has released the 2005 optional standard mileage rates for computing the deductible costs of operating an automobile for business, charitable, and medical or moving expense purposes:
- 40.5 cents per mile for business miles
- 15 cents per mile for deductible medical or moving expenses
- 14.5 cents per mile for services to charities
The 3 cent increase in the business mileage rate is the largest in history. For a copy of Rev. Proc. 2004-64, see here.
