Mileage rates for motor vehicle expense

Mileage rates is used to deal with the problem between business and private use of a motor vehicle.

IRD sets out the mileage rates to determine the proportion of the business use of a motor vehicle to its total use when a person uses a motor vehicle partly for business purposes and partly for other purposes. The mileage rates for 2015 is 74 cents as shown in the Tax Information Bulletin Volume 27, Issue 8 September 2015.  Vehicle deduction for the year will be calculated as the total business travel for the year times times rate.

There are other efficient ways to calculate vehicle expenses for the year. Please seek professional advice before calculate vehicle expenses.  

Disclaimer: The following answer necessarily sets out general principles only. The facts of particular cases always need to be considered carefully, and it may be necessary to obtain advice from a tax expert.

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