Here Are The IRS 2017 Standard Business, Medical and Moving Mileage Rates

2017-auto-article-2 

The Internal Revenue Service has recently issued the 2017 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

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

The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016.

The charitable rate is set by statute and remains unchanged.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer 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.

For more of a technical explanation of these rules and other requirements please see Rev. Proc. 2010-51.

Notice 2016-79 explains in more detail the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

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One response to “Here Are The IRS 2017 Standard Business, Medical and Moving Mileage Rates

  1. Deborah Fromm

    Great little bit of info. Short and Sweet! Me Likey!!! mwa!

    On Tue, Jun 20, 2017 at 12:22 PM, Philadelphia Estate and Tax Attorney Blog wrote:

    > STEVEN J. FROMM, ATTORNEY, LL.M. (TAXATION) posted: ” The Internal > Revenue Service has recently issued the 2017 optional standard mileage > rates used to calculate the deductible costs of operating an automobile for > business, charitable, medical or moving purposes. Beginning on Jan. 1, > 2017, the standard m” >

    Like

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