The Business Mileage Allowance for 2016? - Not Yet!
Well our IRS was a bit late last year in announcing the mileage allowance or as some say mileage deduction figures for the year 2015.
I eagerly awaited the news from them, and when I got it - I published it for the world to see!
For those folks who qualify to use the allowance it was good news last year as the price of gasoline had dropped dramatically and the amount of allowance was raised by a penny and a half.
So for the year 2016 we can get a lower rate than we had in 2015, for 2016 it is only 54 cents per mile allowance for miles driven for business and qualifying use.
This is three and a half cents lower than the previous year.
The cost of gas in 2015 is about 79 cents less per gallon than it was in 2014.
Last year, 2015 as you might already know it was different.
Read about 2015 mileage deduction here 2015 Mileage Deduction
Last year the rate was good - check the details on the 2015 Mileage Page.
The advantage last year (2015) is that the money went up dramatically, and the cost of fuel being about 25% - 30% lower gave us a much better tax advantage than the last several years.
Can I use the mileage allowance?
There are requirements for you to use the business allowance.
If you are a self employed - sole proprietor and use your vehicle for business then you usually can take the mileage allowance, as long as you don't try to deduct any of the typical deductions such as gas, oil, repairs etc. Just take your business related miles and parking fees.
Mid year rate change?
A lot of us are hoping that it won't change mid year as it has in the year 2011.
The change date is six months after January 1, so the change falls on July 1, of the same year.
In that year it went higher but it could go lower and that is our fear.
Here is what the IRS in the year 2011 had to say about it.
"The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51."
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