Business Miles Rate Decreased in 2016
You know how little things can add up. Things like mileage. On January 1, 2016, the Internal Revenue Service issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating a car, van, or pickup for business or a charity. Here are the new numbers:
Standard Mileage Rates:
- 54¢ per mile driven for business (a decrease of 3.5¢ per mile)
- 19¢ per mile driven for medical or moving purposes (a decrease of 4¢ per mile)
- 14¢ per mile driven in service of a charitable organization
Of course, you always have the option of calculating the actual costs of using your vehicle rather than using the standard mileage rates. However, you may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction for that vehicle.
In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
So how can you make sure you’re taking the deductions that are best for you? Ask us. We’ll help you decides whether claiming mileage rates or calculating the actual costs will help you get more miles per gallon.