The Internal Revenue Service has issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 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.
- 19 cents per mile driven for medical or moving purposes.
- 14 cents per mile driven in service of charitable organizations.
The rate for business miles driven during 2016 decreases 3.5 cents from the 2015 rate.
Remember to keep a log of your mileage for every trip you take. This will make tracking your mileage much easier when the end of the year arrives.
Contact Us for questions on the new standard mileage rate.