The end of year brings about changes, extenders and provisions in the world of individual and business taxation. One of the IRS changes announced for 2016 is the 3.5 cent reduction in standard mileage rates for business use of a vehicle.
Specifically, for business use of a car, van, pickup truck, or panel truck, the rate for 2016 will be 54 cents per mile, compared with 57.5 cents in 20
15. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.
Driving for medical or moving purposes may be deducted at 19 cents per mile, which is four cents lower than for 2015.
The rate for service to a charitable organization is unchanged, set by statute (Sec. 170(i)) at 14 cents a mile.
Related read: New Legislation Includes Tax-Free IRA Distributions
The portion of the business standard mileage rate that is treated as depreciation will be 24 cents per mile for 2016, the same as 2015.
Tax law and deductions can be confusing. The Zinner tax team and management consultants can help prepare you and your business for optimum performance. I'm ready to help; contact me at 216-831-0733 or hkass@zinnerco.com for a no cost, no obligation consultation.
