
INSIGHTS FROM OUR NATIONAL TAX OFFICE	DECEMBER 23, 2015

Some IRS mileage rates decreasing for 2016

The Internal Revenue Service has announced the 2016 standard mileage rates for the use of a car, which also includes vans, pickups and panel trucks (Notice 2015-137). Effective for mileage incurred after December 31, 2015, the rates are as follows:

Type of Auto Use	Standard Mileage Rate
Business	54 cents
Charity	14 cents
Medical	19 cents
Moving	19 cents

The standard mileage rates for business, medical and moving decreased for 2016 based on an annual study that includes variable costs that would factor in the decline in the cost of fuel. The standard mileage rate for charity is based on a statutory provision and remains the same for 2016.

Taxpayers always have the option of claiming deductions based on the actual costs of using a vehicle rather than the standard mileage rates.

Who Can't Claim the Rate

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).

Please contact your Eide Bailly service provider with questions or for additional information.

Eide Bailly's National Tax Office serves as a resource for clients to help analyze complex tax issues related to business decisions. Our professionals are committed to helping clients stay informed about tax news, developments and trends through various specialty areas, including cost segregation studies, wealth transfer, state and local taxation, international tax, IRS controversy and procedures, R&D tax incentives, tax-exempt organizations, tax legislation, accounting methods and pass-through entities.

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This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Eide Bailly LLP and the author do not assume responsibility for any individual's reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique before recommending the technique to a client or implementing it on the client's behalf. To request reprints of this publication, send a written request to RequestReprints@eidebailly.com. � 2015 Eide Bailly LLP.