The IRS issued their 2016 mileage rates on December 17, 2015. These rates are used to calculate the deductible costs of operating an automobile for business, charitable, and medical or moving purposes.
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Starting January 1, 2016, the standard mileage rates for the use of a car (also van, pickup or panel truck) will be:
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- 54 cents per mile for business purposes; a decrease of 3.5 cents from 2015
- 19 cents per mile for medical or moving purposes; a decrease of 4 cents from 2015
- 14 cents per mile for charitable purposes; no change from 2015
The mileage rate for business purposes is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on variable costs.
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With the drop in gas prices throughout 2015, the decrease in the mileage rates for 2016 was not unexpected.
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If you need more information about this, please contact Jamie Downey at 800-849-6022 or JMDowney@DowneyCoCPA.com.
