Dec 23, 2020, 8:28 PM
(From Journal of Accountancy) The Internal Revenue Service has released the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes. Beginning January 1, 2021, the standard mileage rate for business use of a car, van, pickup, or panel truck will be 56 cents per mile, down 1.5 cents from the 2020 rate. Only the second time in the past decade that the IRS has made two consecutive rate reductions, it is the first occurrence of back-to-back decreases since 2016-17.
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile, and can be used as a guide for reimbursing mileage. Independent schools should consider updating their employee handbook and mileage reimbursement documents to reflect the 2021 standard mileage rate, according to Liz Maher, NBOA’s director, accounting and tax programs.
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