Daily Briefs . . .

IRS announces 2016 standard mileage rates


The Internal Revenue Service has 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 business mileage rate decreased 3.5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute.

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.

 

 

UD Mercy Law hosts Law Review Centennial Symposium March 4
 

The Law Review Centennial Symposium — focusing on the past, present, and future legal issues facing the city of Detroit — will be held from 9 a.m. to 3:30 p.m. March 4 on the Detroit Mercy Law campus. The symposium will feature legal professionals and scholars from the city of Detroit and across the country to discuss legal issues confronted throughout Detroit’s history, today, and issues that may arise in the future. Confirmed speakers include:

• Michael E. Duggan – keynote address (Mayor, City of Detroit);

 • Honorable Gerald E. Rosen (Chief Judge of the U.S. District Court for the Eastern District of Michigan); and

 • Eugene A. Gargaro, Jr. (’67) (Detroit Mercy Law alumnus, member of the University’s Board of Trustees, and Chair, Board of Directors, Detroit Institute of Arts) to discuss the grand bargain that helped resolve
Detroit’s bankruptcy.

 The Law Review has been devoted to discussing issues facing the Detroit community since its inception in 1916. The Law Review is a student publication that discusses legal issues facing Detroit, the State of Michigan, and the United States, and finding practical solutions.

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