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Optional standard mileage rates released for 2016

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Tax Hot Topics: Mileage ratesIn Notice 2016-1, the IRS issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. In lieu of using the optional standard mileage rates, taxpayers have the option of calculating the actual costs of using their vehicle.  

Beginning on Jan. 1, 2016, the standard mileage rates for the use of an automobile are:

  • 54 cents per mile for business miles driven (down from 57.5 cents in effect for 2015)
  • 19 cents per mile driven for medical or moving purposes (down from 23 cents in effect for 2015)
  • 14 cents per mile driven in service of charitable organizations (no change from prior year)  
The standard mileage rates are based on an annual study of the costs of operating an automobile.  Rev. Proc. 2010-51 contains additional details regarding the use of standard mileage rates.

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