New York SBDC Research Network

Notice 2016-1 SECTION 1. PURPOSE This notice provides the optional 2016 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. This notice also provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan. SECTION 2. BACKGROUND Rev. Proc. 2010-51, 2010-51 I.R.B. 883, provides rules for computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes, and for substantiating, under § 274(d) of the Internal Revenue Code and § 1.274-5 of the Income Tax Regulations, the amount of ordinary and necessary business expenses of local transportation or travel away from home. Taxpayers using the standard mileage rates mu...

The IRS has clarified how the 50-percent limitation on deducting meal and entertainment expenses applies to reimbursement arrangements involving three-party situations (e.g., employee leasing companies) and to independent contractors. The new rules provide options for claiming these deductions and offer planning opportunities that should be explored with your tax advisors. More from the Business Owner's Toolkit .

As 2012 comes to a close, individuals and businesses need to remember some key tax provisions for making contributions to charity. The IRS offers these reminders for year-end giving: To deduct monetary donations you must have a bank record or written document from the charity stating the name of the charity, the contribution amount and the date. Contributions are deductible in the year made, even if the credit card bill isn't paid or the check isn't cashed until 2013. Only donations made to qualified organizations are tax deductible. Make sure the organization you want to donate to is qualified before making any contribution. Individuals must itemize their deductions on Form 1040 Schedule A or use a short form (Form 1040A and 1040EZ) to claim the standard deduction. Find more year-end giving tips from the IRS.