The Business Mileage Allowance for 2016... Here it is!
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 54 cent per mile allowance for miles driven for business and qualifying use.
Last year the rate was good - check the details on the 2015 Mileage Page. This year it isn't as good. It is still better than not taking any deduction though, and I like it a lot as I have to drive for business.
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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