IRS lowers business mileage rate for 2016
The standard mileage rates you can use to calculate your deductible vehicle expenses during 2016 for business, medical, and moving mileage have decreased from last year. Here's a recap.
Business. Starting January 1, you can reimburse yourself or your employees 54 cents per mile when you use your personal vehicle for business purposes. That's down from 57.5 cents in 2015.
The standard business mileage rate includes an allowance for depreciation of 24 cents a mile that reduces your cost basis in the vehicle.
Remember to keep "enhanced" records to support your deduction for mileage. For car expenses, "enhanced" means that at or near the time you use a vehicle for business purposes, you write down the date, the mileage, your destination, and the purpose of the trip in a logbook or other record. Keep receipts for parking fees and tolls too. You can deduct those expenses even if you use the standard mileage rate.
Medical and moving. The rate for medical and moving mileage decreases from last year's 23 cents a mile to 19 cents a mile.
Charity. The general rate for charitable driving remains 14 cents a mile.
Contact your Dugan & Lopatka CPA at (630) 665-4440 for more information.