2016 Standard Mileage Rates Announced

2016_MileageRatesBeginning on January 1, 2016, the standard mileage rates for the use of a car, van, pickup, 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

If preferable, taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) 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.

Always consult your tax professional to determine calculations and deductions for your unique tax situation.