The term “standard mileage rate” is actually a bit of a misnomer, as there are several different standard mileage rates depending on what the vehicle was being used for. Here are the three standard mileage rates published by the IRS for 2016:
- For business purposes: $0.54 per mile
- For medical or moving purposes: $0.19 per mile
- For charitable purposes: $0.14 per mile
So when you’re working on your tax return, make sure you’re using the standard mileage rate that applies to your specific situation! Also, it’s important to keep in mind that you can use the actual costs of operating your vehicle for these purposes in lieu of using the standard mileage rate. If you have the documentation regarding gas use, parking costs, and other actual expense of operating your vehicle for business, medical, moving, or charitable purposes, and that amount is higher than using the standard mileage rate, you may deduct that higher amount on your taxes.
And don’t forget, if you have questions about the standard mileage rates for 2016, or any other tax topic, Taxation Solutions, Inc. is standing by to help. We have more than 40 years of experience in the tax industry, and our team is committed to treating you right. End your tax problems by calling today!