Small Business

2016 Standard Mileage Rates for Business, Medical and Moving Expenses Announced

Posted by admin on December 27, 2015
IRS, Small Business, Tax Deducations, Tax Law, Tax Planning / Comments Off on 2016 Standard Mileage Rates for Business, Medical and Moving Expenses Announced

IRS announced 2016 Standard Mileage Rates for Business, Medical and Moving Expenses 

The Internal Revenue Service today issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. 2016 Standard Mileage Rates for Business Announced below.

Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups 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

The business mileage rate decreased 3.5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute.

The standard mileage rate for business 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 the variable costs.

Taxpayers always 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.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51.  Notice 2016-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

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Income Tax Refund Calendar 2012

2012 IRS e-file cycle chart and payment information.

Direct Deposit and Check date’s below. Please see disclaimer.

 

IRS accepts your return (by 11:00 am) between…* Projected Direct Deposit Sent* Projected Paper Check Mailed*
January 30, 2013
2/6/2013
2/8/2013
January 31
and
February 6, 2013
2/13/2013
2/15/2013
February 9
and
February 13, 2013
2/20/2013
2/22/2013
February 16
and
February 20, 2013
2/27/2013
3/1/2013
February 23
and
February 27, 2013
3/6/2013
3/8/2013
March 1
and
March 6, 2013
3/13/2013
3/15/2013
March 8
and
March 13, 2013
3/20/2013
3/22/2013
March 15
and
March 20, 2013
3/27/2013
3/29/2013
March 22
and
March 27, 2013
4/3/2013
4/5/2013
March 29
and
April 3, 2013
4/10/2013
4/12/2013
April 5
and
April 10, 2013
4/17/2013
4/19/2013
April 12
and
April 17, 2013
4/24/2013
4/26/2013
April 19
and
April 24, 2013
5/1/2013
5/3/2013
April 26
and
May 1, 2013
5/8/2013
5/10/2013
May 3
and
May 8, 2013
5/15/2013
5/17/2013
May 10
and
May 15, 2013
5/22/2013
5/24/2013
May 17
and
May 22, 2013
5/29/2013
5/31/2013
May 24
and
May 29, 2013
6/5/2013
6/7/2013
May 31
and
June 5, 2013
6/12/2013
6/14/2013 Continue reading…

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