IRS Mileage Rates for 2015-2016

Mileage Rates Going Down for 2016

The IRS has published the optional mileage rates for use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving purpose

The optional rates, beginning January 1, 2015 and 2016,  are as follows:

The business rate is designed to include the fixed and variable cost of operating a vehicle. The medical/moving rate covers the variable cost, only,  and the charitable use rate is an amount fixed by law.

Taxpayers should maintain records to substantiate the amount and purpose of the deductible mileage.

Instead of using the optional rates, a taxpayer who maintains adequate records can deduct actual costs. 

A taxpayer may not use the business standard mileage rate for a vehicle after claiming accelerated depreciation, including the Section 179 expense deduction, on that vehicle. Likewise, the standard rate is not available to fleet owners (more than four vehicles used simultaneously).