HR Alert

IRS Updates Publication 463 on Travel, Entertainment, Gift, and Car Expenses

Taxpayers May Be Able to Deduct Certain Expenses

The Internal Revenue Service (IRS) has updated Publication 463 (Travel, Entertainment, Gift, and Car Expenses) for use in preparing 2016 returns that are filed in 2017.

Background
Taxpayers may be able to deduct the ordinary and necessary business-related expenses they have for travel, entertainment, gifts, or transportation. IRS Publication 463 explains what expenses are deductible, how to report them on returns, what records are needed to prove expenses, and how to treat any expense reimbursements received.

Highlights of Updated Publication
Updated Publication 463 contains the following new information:

  • Standard mileage rate. For 2016, the standard mileage rate for the cost of operating a taxpayer's car for business use is 54 cents per mile.
  • Depreciation limits on cars, trucks, and vans. For 2016, the first-year limit on the total depreciation deduction for cars remains at ,160 (,160 if a taxpayer elects not to claim the special depreciation allowance). For trucks and vans, the first-year limit is ,560 (,560 if a taxpayer elects not to claim the special depreciation allowance).
  • Section 179 deduction. For 2016, the section 179 deduction limit on qualifying property purchases (including cars, trucks, and vans) is a total of 0,000, and the limit on those purchases at which the deduction begins to be phased out is ,010,000.
  • Special depreciation allowance. For 2016, the special ("bonus") depreciation allowance on qualified property (including cars, trucks, and vans) remains at 50%.

Click here to access Publication 463.


Close
Login to HRSPI Client Portal
Username:
Password:
Forgotten PasswordForgot Password
Executive Search Executive Search

Harrassment Prevention

HRSPI offers comprehensive, interactive, AB1825-Compliant training. Programs include introduction to recent anti-bullying legislation.

Latest News

  • California Bans the Box

    AB 1008 will prohibit most public and private employers from asking applicants about criminal conviction histories until after a conditional offer of employment has been made.

    <read more>

News Archives

Latest Blog

Blog Archives