Definitions for "Standard mileage rate"
A fixed rate allowed by the IRS for business transportation expenses in place of deducting actual expenses.
Also known as the optional method. A method used to calculate the deductible costs of operating a car (including a van, pickup, or panel truck) for business purposes based on a fixed number of cents per mile for business, charitable, medical, or moving miles. The standard mileage rate varies depending on the activity for which the vehicle was used: charitable, medical, or in connection with job-related moving expenses.
A method used to calculate the deductible costs of operating a vehicle (including a car, van, pickup, or panel truck under 6,000 pounds) for business purposes based on a fixed number of cents per mile for business, charitable, medical, or moving miles. The standard mileage rate varies depending on the activity for which the vehicle was used: charitable, medical, or in connection with job-related moving expenses. The standard mileage rate is also known as the optional method and is used instead of a deduction for actual vehicle expenses.