IRS Mileage Rates Down for 2016
Posted on January 6th, 2016 in General Interest
With a new year comes new opportunities, resolutions, and of course our favorite, new mileage deduction rates for 2016.
Overall, the IRS is not as kind to us in 2016 as they were in 2015.
For starters, the IRS mileage rate for the business use of a vehicle will fall in 2016 to 54 cents down from 57.5 cents in 2015.
If you are taking mileage due to medical or moving related travel, then your rate for 2016 will be 19 cents per mile compared to 23 cents in 2015.
On the bright side, mileage related to charitable work will stay unchanged at 14 cents per mile.
If you are using the allowance under the Fixed and Variable Rate plan (FAVR), the maximum standard deduction for automobiles (excluding trucks and vans) will be reduced by $200 this year to $28,000. For trucks and vans, $200 increase took effect, which results in the maximum standard cost of $31,000.
About the Author – Phillip Zagotti, CPA is the President of Zagotti and Burdette CPA, LLC. He can be reached at email@example.com or (832) 800-3347.