On December 22, 2020, the Internal Revenue Service issued the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Beginning on January 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are as follows:
• 56 cents per mile driven for business use (down 1.5 cents from the rate for 2020)
• 16 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces (down 1 cent from the rate for 2020)
• 14 cents per mile driven in service of charitable organizations (unchanged from 2020)
A copy of IRS Notice 2021-02 can be viewed here. The information shared in this update is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.
A copy of IRS Notice 2021-02 can be viewed here. The information shared in this update is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.
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