Running a little later than usual, the Internal Revenue Service recently issued the revised standard mileage rate which is used to calculate the deductible costs of operating an automobile for business purposes during 2016.
Beginning January 1, 2016, the standard mileage rate for the use of a car for business purposes will be54.0 cents per mile for business miles driven – a decrease of 3.5 cents per mile from the 2015 rate.
While the lower price of gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation. The standard mileage rate is based on an annual study of the fixed and variable costs of operating an automobile.
Churches that follow an accountable reimbursement plan should use the new rate to budget expenses for next year.