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. § 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 some employers for computing employee reimbursement amounts when an employee operates a motor vehicle not owned by the employer for the employer's business purposes. The General Services Administration (GSA) sets the rate for federal jobs. In general, the GSA rate matches the annual rate set by the IRS, although by law the government employee reimbursement rate cannot exceed the mileage rate set by the IRS for business deductions.
Reimbursement by an employer on a per-mile basis is also used in other countries; it offers a similar simplification to payment of subsistence per diem.
Video Business mileage reimbursement rate
Reimbursement rates since 1991
Maps Business mileage reimbursement rate
References
- IRS.gov Standard Mileage Rate Overview
- IRS Document 463; Form 2106, Internal Revenue Service, U.S. Dept. of the Treasury (for applicable years); IRS Rev. Proc. 2005-78; IRS Rev. Proc. 2006-49; IRS Rev. Proc. 2008-72.
- "Privately Owned Vehicle (POV) Mileage Reimbursement Rates". General Services Administration. Retrieved 2008-10-17.
- Revenue Procedure 2008-72, I.R.B. 2008-50, November 24, 2008, Internal Revenue Service, U.S. Dep't of the Treasury.
- "IRS Announces 2011 Standard Mileage Rates". Internal Revenue Service. 2010-12-03. Retrieved 2010-12-15.
- "IRS Announces 2012 Standard Mileage Rates". Internal Revenue Service. 2011-12-09. Retrieved 2011-12-14.
- "Standard Mileage Rates for 2013". Internal Revenue Service. 2012-11-21. Retrieved 2012-11-21.
- "2014 Standard Mileage Rates". Internal Revenue Service. 2013-12-06. Retrieved 2013-12-20.
- "Privately Owned Vehicle Mileage Rates (Archived)". 2016-03-20. Retrieved 2016-03-20.
Source of the article : Wikipedia
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