Today the IRS announced new standard mileage rates to be used to calculate the deductible cost of operating an automobile for business, charitable, medical or moving purposes on tax returns:
Beginning on January 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 54 cents per mile for business miles driven, down from 57.5 cents for 2015
- 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
- 14 cents per mile driven in service of charitable organizations
The standard mileage rates are an optional method for computing automobile expenses rather than reporting actual expenses and depreciation. Regardless of which method is used, taxpayers must still must be able to substantiate the business use of their vehicles.
For more information about automobile deductions, please contact us at (425) 222-6374 or firstname.lastname@example.org