The IRS announced on December 17, 2015 the new 2016 tax-deduction rates for using your vehicle for business, charity, medical and moving…
These rates tend to change from year to year, usually going up. This will not be the case for 2016! Vehicle-Use tax-deduction rates will decrease in 2016:
• Business: 54¢ per mile (57.5¢ in 2015, decrease of 3.5¢)
• Charity: 14¢ per mile ( 14¢ 2015, No change)
• Medical: 19¢ per mile (23¢ in 2015, decrease of 4¢)
• Moving: 19¢ per mile (23¢ in 2015, decrease of 4¢)
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Stay up to date with the latest tax news and information at LAE Business Services on LinkedIn.