Standard Mileage Rate to Decline in 2016

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The standard business mileage rate for vehicular transportation or travel expenses is to fall to 54 cents a mile in 2016 from 57.5 cents a mile in 2015, the Internal Revenue Service said Dec. 17 in Notice 2016-1 and IR-2015-137. The rate for medical care or the use of an automobile as part of a move with deductible expenses decrease to 19 cents a mile from 23 cents. The mileage rate for charitable remains 14 cents a mile. The maximum standard automobile cost that may be used in computing the allowance under a fixed- or variable-rate plan falls to $28,000 in 2016 from $28,200 for automobiles, excluding trucks and vans, and increases to $31,000 in 2016 from $30,800 for trucks and vans.