Gas prices are down!

Gas prices are down!

gas pricesWell, we humans aren’t the only ones that has noticed that gas prices have gone down. According to WKYC.com, average Ohio gas prices have fluctuated quite a bit over the last 72 months, ranging from $4.15 to $1.82 per gallon, with this being a very good time for buying gas.  The IRS has noticed too of course. As they like you do, they have put a bit of a damper on this exciting development.

The mileage deduction for using your car for business, medical or moving purposes have all gone down as of January 1, 2016.

When using the Standard Mileage Deduction for 2016 you can deduct the following amounts, per mile, in additional to parking and tolls (see additional info, below)

BUSINESS: 54 CENTS (down from 57.5 for 2015)

MEDICAL AND MOVING: 19 (down from 23 cents for 2015)

CHARTIABLE: remains the same at 14 cents per mile

SOME ADDITONAL “NEED TO KNOW” ITEMS
-your first parking of the day is considered “commuting expense” and is NOT deductible
-you should keep a mileage log showing the date, location, number of miles, and purpose for each item
-you must deduct your normal round trip commute number of miles from total mileage each day-even if you didn’t go to your normal place of work that day
-you can deduct mileage to a second job if you work more than one in a day

Of course there are a lot more rules related to this topic……special rules for temporary work locations, overnight travel for business, taking actual auto expenses vs. mileage, depreciation, etc, etc, etc.  Lots more exciting reading on this topic at IRS.gov.

Linda Reinhardt

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