IRS lowers standard mileage rate for 2016
Posted On: 12-17-2015 | Posted By: WK Staff
The optional standard mileage rate used to calculate the cost of operating a vehicle for business purposes will be set at 54 cents per business mile driven on January 1, 2016. This is a decrease from 57.5 cents per mile in 2015.
The Internal Revenue Service issued the following 2016 standard mileage rates for use of a car, van, pickup or panel truck.
- 54 cents per mile for business miles driven (a decrease of 3.5 cents from the 2015 rate)
- 19 cents per mile driven for medical or moving purposes (a 4-cent decrease)
- 14 cents per mile driven in service of a charitable organization (no change)
Instead of using these rates, taxpayers have the option to calculate the actual expenses incurred when using personal vehicles.
If a taxpayer has taken a Section 179 depreciation deduction on a vehicle or is a fleet owner, standard mileage should not be used. Contact your WK advisor for guidance in those situations.
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