Instead of using the business portion of the actual expenses of operating a vehicle, IRS permits taxpayers to use a standard mileage rate. The rates for travel on or after January 1, 2021, are:
The business rate is 56 cents per mile (down from 57.5 for 2020). The depreciation portion of this rate is 26 cents per mile (down from 27 for 2020).
Charitable rate is 14 cents per mile (same as for 2020).
Medical and moving rate is 16 cents per mile (down from 17 for 2020).
Reminder – The standard mileage rate cannot be used for any vehicle where the taxpayer has: a) claimed depreciation using a method other than straight-line for its estimated useful life, b) claimed a §179 deduction, c) claimed the additional first-year (aka “bonus”) depreciation, or d) used ACRS or MACRS.