The Internal Revenue Service has issued its 2017 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) is:
- 53.5 cents per mile for business miles driven, down from 54 cents in 2016.
- 17 cents per mile driven for medical or moving purposes, down from 19 cents in 2016.
- 14 cents per mile driven in service of charitable organizations, same rate as in 2016.
You always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
You may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.
In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
If you would like to learn more about this tax strategy, please call Susan at 630.523.5762.