2016 Standard Mileage Rates Released (IR-2015-137; Notice 2016-1)

The IRS has released the 2016 optional standard mileage rates that employees, self-employed individuals, and other taxpayers can use to compute deductible costs of operating automobiles (including vans, pickups and panel trucks) for business, medical, moving and charitable purposes.

The 2016 standard mileage rate has decreased to 54 cents per mile for business uses and 19 cents per mile for medical and moving uses. It remains at 14 cents per mile for charitable uses. For purposes of computing the allowance under an FAVR plan, the standard automobile cost may not exceed $28,000 ($31,000 for trucks and vans).

The updated rates are effective for deductible transportation expenses paid or incurred on or after January 1, 2016, and for mileage allowances or reimbursements paid to, or transportation expenses paid or incurred by, an employee or a charitable volunteer on or after January 1, 2016.

Notice 2014-79, I.R.B. 2014-53, 1001, is superseded.

IR-2015-137, 2016FED ¶46,204

Notice 2016-1, 2016FED ¶46,205

Other References:

Code Sec. 61

CCH Reference – 2015FED ¶1090.11

CCH Reference – 2015FED ¶5907.0325

Code Sec. 62

CCH Reference – 2015FED ¶6006.0324

Code Sec. 162

CCH Reference – 2015FED ¶8590.021

CCH Reference – 2015FED ¶8590.55

Code Sec. 170

CCH Reference – 2015FED ¶11,620.029

CCH Reference – 2015FED ¶11,620.6744

Code Sec. 213

CCH Reference – 2015FED ¶12,543.035

CCH Reference – 2015FED ¶12,543.82

Code Sec. 217

CCH Reference – 2015FED ¶12,623.021

CCH Reference – 2015FED ¶12,623.11

Code Sec. 274

CCH Reference – 2015FED ¶14,417.043

CCH Reference – 2015FED ¶14,417.045

CCH Reference – 2015FED ¶14,417.046

CCH Reference – 2015FED ¶14,417.047

CCH Reference – 2015FED ¶14,417.048

CCH Reference – 2015FED ¶14,417.05

CCH Reference – 2015FED ¶14,417.051

CCH Reference – 2015FED ¶14,417.052

CCH Reference – 2015FED ¶14,417.053

CCH Reference – 2015FED ¶14,417.50

Code Sec. 1016

CCH Reference – 2015FED ¶29,412.023

Tax Research Consultant

CCH Reference – TRC INDIV: 36,164

CCH Reference – TRC INDIV: 39,106.10

CCH Reference – TRC INDIV: 42,158

CCH Reference – TRC INDIV: 51,056.15

CCH Reference – TRC BUSEXP: 24,506.05

CCH Reference – TRC BUSEXP: 24,506.10

CCH Reference – TRC BUSEXP: 24,510

CCH Reference – TRC BUSEXP: 24,906.25

CCH Reference – TRC BUSEXP: 24,912.10

CCH Reference – TRC DEPR: 3,252.15

CCH Reference – TRC FARM: 9,074

 

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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