Most people who drive for business calculate their deduction using the standard mileage rate. This is definitely valuable and you should take it. But, don’t forget about these three often-overlooked business vehicle deductions for your business car.
The mileage rates 2015 for business drives is 57.5 cents per mile. The IRS decreased the standard mileage rate for 2016 to 54 cents per mile. Let’s go over what the business mileage rate is and what it means to you.
The Mileage Rate 2016 is important for anybody looking for a driving-related deduction. This is also often called the Standard Mileage Rate and is worth 54 cents per mile for business-related drives in 2016. The federal mileage rate 2016 is:
- 54 cents per mile for business mileage
- 19 cents per mile for medical mileage or moving
- 14 cents per mile for charity miles.
If you’re a self-employed worker who uses your personal car for business purposes, you could be leaving money on the road. The CRA allows you to deduct motor vehicle expenses on your taxes. Here’s what you need to know about deducting your business mileage in Canada.