Tax Law and News IRS Announces 2016 Standard Mileage Rates for Business, Medical and Moving Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Scott Cytron Modified May 20, 2020 1 min read The IRS has issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning 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 Sec. 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. Previous Post Well Known and Not-so-Well Known Tax Tips Next Post How to Explain Holiday Bonus Tax to Your Clients Written by Scott Cytron Scott H. Cytron, ABC, is editor of the Intuit® Tax Pro Center. He brings more than 35 years' experience in accounting and financial services to the profession. An accredited consultant, Scott works with companies, organizations and individuals in professional services (medical, legal, accounting, engineering), high-tech and B2B/B2C product/service sales. Follow Scott on Twitter @scytron. More from Scott Cytron Comments are closed. Browse Related Articles Tax Law and News Standard Mileage Rates Will Go Down in 2016 Tax Law and News Deducting the Standard Mileage Rate vs. Actual Expenses… Tax Law and News Are Your Clients Overdue for a Company Car Tune-Up? Tax Law and News IRS annual inflation adjustments for tax years 2020 and… Tax Law and News Annual inflation adjustments for TY 2023 and 2024 Tax Law and News IRS Annual Inflation Adjustments for Tax Years 2018 and… Tax Law and News IRS Annual Inflation Adjustments for Tax Years 2019 and… Tax Law and News Annual inflation adjustments for TY 2022 and 2023 Tax Law and News IRS annual inflation adjustments for tax years 2021 and… Tax Law and News Advising Your Self-Employed Driver Clients: Don’t Ove…