SECTION 5. BUSINESS STANDARD

MILEAGE RATE

.01 In general . The standard mileage rate for transportation expenses is 44.5 cents per mile for all miles of use for business purposes.

.02 Use of the business standard mileage rate . A taxpayer may use the business standard mileage rate with respect to an automobile that is either owned or leased by the taxpayer. A taxpayer generally may deduct an amount equal to either the business standard mileage rate times the number of business miles traveled or the actual costs (both operating and fixed) paid or incurred by the taxpayer that are allocable to traveling those business miles.

.03 Business standard mileage rate in lieu of operating and fixed costs . A deduction using the standard mileage rate for business miles is computed on a yearly ba

2005–51 I.R.B. 1179 December 19, 2005