News
IRS lowers standard mileage rate for 2016
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.
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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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OTHER STORIES FOR YOU
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REDUCE YOUR BUSINESS’ TAX BURDEN FOR 2015. What can your business do before the end of the year to minimize taxes? Find some suggestions below that can help reduce your business tax burden for 2015.
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YEAR-END TAX PLANNING TIPS FOR INDIVIDUALS. As the end of the year approaches, it’s time to begin thinking about what steps you can take to reduce your 2015 personal income tax bill and how to best plan for future tax years. It’s best to start thinking of this now, before the holidays approach, to allow time for your tax professionals to help you complete any necessary work.
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SAFE HARBOR EXPENSING THRESHOLD INCREASES FOR SMALL BUSINESSES. To ease an administrative burden on small businesses when depreciating small-dollar tangible property, the Internal Revenue Service is raising the expensing threshold from $500 to $2,500, beginning January 1, 2016.
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