The IRS has announced the 2016 standard mileage rates effective for mileage driven on or after January 1st, 2016. The optional standard mileage rate multiplied by the number of miles driven is a simplified method commonly used to calculate the deductible cost of using a vehicle for business purposes. In addition, the rates can be used to calculate the deductible mileage allowed for attending medical appointments, moving, or when driving to serve with a charity.
The 2016 rates are as follows:
- Business Mileage can be deducted at 54 cents per mile, reduced from 57.5 cents per mile in 2015. The rate
from It’s Taxing – Bond Beebe