SEC. 4. DEFINITIONS

.01 Standard mileage rate. The term ‘‘standard mileage rate’’ means the applicable amount provided by the Service for optional use by employees or self-employed individuals in computing the deductible costs of operating passenger automobiles owned by them (including vans, pickups, or panel trucks) for business purposes, or by taxpayers in computing the deductible costs of operating passenger automobiles for charitable, medical, or moving expense purposes.

.02 Transportation expenses. The term ‘‘transportation expenses’’ means the expenses of operating a passenger automobile for local travel or transportation away from home.

.03 Mileage allowance. The term ‘‘mileage allowance’’ means a payment under a reimbursement or other expense allowance arrangement that meets the requirements specified in § 1.62–2(c)(1) and that is

(1) paid with respect to the ordinary and necessary business expenses incurred, or which the payor reasonably anticipates will be incurred, by an employee for transportation expenses in connection with the performance of services as an employee of the employer,

(2) reasonably calculated not to exceed the amount of the expenses or the anticipated expenses, and

1995–2 C.B. 451

Business (Sec. 5 below) 31 cents per mile Rural Mail Carrier 46.5 cents

Rural Mail Carrier 46.5 cents

(Sec. 6 below) per mile

Charitable (Sec. 7 12 cents below) per mile

(Sec. 6 below)

Charitable (Sec. 7 12 cents below) per mile

Medical and Moving 10 cents

(Sec. 7 below)

10 cents per mile