The IRS has released the optional standard mileage rates for 2016, and taxpayers will see decreased rates for calculating deductions related to automobile use for business, medical or moving purposes.

Effective Jan. 1, 2016, the deductible mileage rates for use of car, van, pickup or panel truck are as follows:

• Business: 54 cents per mile (previously 57.5 cents)
• Medical/Moving: 19 cents per mile (previously 23 cents)
• Charitable: 14 cents (remains the same)

The IRS states that taxpayers may calculate the actual costs of operating their vehicles in lieu of using the standard mileage rate.

If you have questions about mileage deductions, please contact your Whalen & Company representative.

More Information:

• “2016 Standard Mileage Rates for Business, Medical and Moving Announced”

• Category: Client Alerts, Other News & Info
• Tag: can i deduct mileage?, deductible mileage rates, IRS mileage rates, Mileage rates for 2016, optional mileage rates