Tax Law and News Standard Mileage Rates Will Go Down in 2016 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 Sally P. Schreiber, J.D., Journal of Accountancy Modified Jul 5, 2016 1 min read Optional standard mileage rates for business use of a vehicle will go down in 2016 (Notice 2016-1). For business use of a car, van, pickup truck, or panel truck, the rate for 2016 will be 54 cents per mile, compared with 57.5 cents in 2015. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile. Driving for medical or moving purposes may be deducted at 19 cents per mile, which is four cents lower than for 2015. The rate for service to a charitable organization is unchanged, set by statute (Sec. 170(i)) at 14 cents a mile. The portion of the business standard mileage rate that is treated as depreciation will be 24 cents per mile for 2016, the same as 2015. To compute the allowance under a fixed and variable rate (FAVR) plan, the maximum standard automobile cost is $28,000 for 2016 (down from $28,200 in 2015) for automobiles (not including trucks and vans) and $31,000 for trucks and vans (an increase of $200 from 2015). Under a FAVR plan, a standard amount is deemed substantiated for an employer’s reimbursement to employees for expenses they incur in driving their vehicle in performing services as an employee for the employer. Previous Post January 2016 Tax Compliance and Due Dates Next Post Open Enrollment for Marketplace Plans Ends Jan. 31, 2016 Written by Sally P. Schreiber, J.D., Journal of Accountancy Sally P. Schreiber is a Journal of Accountancy senior editor. More from Sally P. Schreiber, J.D., Journal of Accountancy Comments are closed. Browse Related Articles Tax Law and News IRS Announces 2016 Standard Mileage Rates for Business,… 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 Advising Your Self-Employed Driver Clients: Don’t Ove… Tax Law and News Annual inflation adjustments for TY 2023 and 2024 Tax Law and News IRS annual inflation adjustments for tax years 2020 and… Tax Law and News Annual inflation adjustments for TY 2022 and 2023 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 IRS annual inflation adjustments for tax years 2021 and…