Each year, the Internal Revenue Service (IRS) sets standard mileage rates for business based on an annual study of fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil. Beginning on Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 53.5 cents per mile for business miles driven, down from 54 cents for 2016
- 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016
- 14 cents per mile driven in service of charitable organizations
Here are a few things to keep in mind when considering whether deductions apply to you:
- Business miles are miles you’ve driven specifically for business
- Business miles are NOT miles driven between home and your workplace. Those are commuting miles and are not deductible.
- You may not use the business standard mileage rate for a vehicle after claiming accelerated depreciationThe standard rate is not available to fleet owners
- There are maximum standard automobile costs that may be used in computing an allowance under a fixed and variable rate plan
If you plan to claim a deduction for the business use of a vehicle, now is the time to start keeping records. You must keep a detailed log of business miles and any other expenses you plan to write off. If you choose not to claim standard mileage rate deductions, you may alternatively claim deductions based on the actual costs of using your business vehicle.
For additional information on IRS standard mileage rates, please go to https://www.irs.gov/uac/2017-standard-mileage-rates-for-business-and-medical-and-moving-announced.
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