IRS Business Mileage Rate Decreased for 2016

On December 17, 2015, the Internal Revenue Service announced that the standard mileage rates for business will be decreased for 2016.

 

For the year 2016, the optional standard mileage rate will be 54 cents per mile. Taxpayers have the option of using the optional standard mileage rate to calculate deductible costs of operating an automobile for business purposes.

 

The rate for computing the deductible medical or moving costs have also reduced to 19 cents per mile, however the rate for providing services for charitable organizations has remained unchanged at 14 cents per mile. For further information you can go to the IRS announcement at: https://www.irs.gov/uac/Newsroom/2016-Standard-Mileage-Rates-for-Business-Medical-and-Moving-Announced

 

Written By: Jake Stratton