HI All,
Its that time of year again, and I will be here to answer questions on a weekly basic or give you information that might concern your income tax filing for 2015
Here is some important information, It seems that the IRS last night again reduced a very important deduction.
THEY HAVE REDUCED THE STANDARD MILEAGE RATE BY 3.5 CENTS PER MILE AFTER IT WAS INCREASED ON OCT 1, 2015. PLEASE READ
Issue Number: IR-2015-137
Inside This Issue
2016 Standard Mileage Rates for Business, Medical and Moving Announced
WASHINGTON — The Internal Revenue Service today 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 on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
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 Section 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.
Sorry for the bad news. but the IRS is the one that did this.
Franklin Katz, ATP, PA, PB
Frank’s Tax and Business Service
315 E. King St.
Kings Mountain,NC28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail:[email protected]
Web Site: Welcome | Frank's Tax $ Business Service
Providing Professional Accounting, Bookkeeping, Payroll and Income Tax Preparation Services
*Circular 230 Disclaimer: To ensure compliance with Treasury Regulations governing written tax advice, please be advised that any tax advice included in this communication, including attachments, is not intended, and cannot be used, for the purpose of (i) avoiding any federal tax penalty or (ii) promoting, marketing, or recommending any transaction or matter to another person.
Confidentially Notice: This email message is If you have received this message in error and are not the intended addressee, please advise the sender by reply email and delete this message immediately.
*The IRS does not endorse any particular individual tax preparer. For more information on tax return preparers go to IRS.gov
Its that time of year again, and I will be here to answer questions on a weekly basic or give you information that might concern your income tax filing for 2015
Here is some important information, It seems that the IRS last night again reduced a very important deduction.
THEY HAVE REDUCED THE STANDARD MILEAGE RATE BY 3.5 CENTS PER MILE AFTER IT WAS INCREASED ON OCT 1, 2015. PLEASE READ
Issue Number: IR-2015-137
Inside This Issue
2016 Standard Mileage Rates for Business, Medical and Moving Announced
WASHINGTON — The Internal Revenue Service today 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 on 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 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 Section 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.
Sorry for the bad news. but the IRS is the one that did this.
Franklin Katz, ATP, PA, PB
Frank’s Tax and Business Service
315 E. King St.
Kings Mountain,NC28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail:[email protected]
Web Site: Welcome | Frank's Tax $ Business Service
Providing Professional Accounting, Bookkeeping, Payroll and Income Tax Preparation Services
*Circular 230 Disclaimer: To ensure compliance with Treasury Regulations governing written tax advice, please be advised that any tax advice included in this communication, including attachments, is not intended, and cannot be used, for the purpose of (i) avoiding any federal tax penalty or (ii) promoting, marketing, or recommending any transaction or matter to another person.
Confidentially Notice: This email message is If you have received this message in error and are not the intended addressee, please advise the sender by reply email and delete this message immediately.
*The IRS does not endorse any particular individual tax preparer. For more information on tax return preparers go to IRS.gov