Standard mileage rates drop for 2017
Whether you drive your vehicle in your own business or reimburse your employees for business mileage, you'll need to revise the rate you use in 2017. This year, you'll calculate the optional standard mileage rate for business use of cars, vans, pickups, and panel trucks at 53.5¢ per mile, down from the 2016 rate of 54¢.
The standard business mileage rate is based on various costs of operating a vehicle. You can also claim tolls, parking fees, and, in some cases, interest associated with the purchase of a vehicle, and state and local personal property taxes. For 2017, the standard mileage rate includes depreciation of 25¢, up 1¢ from 2016.
Remember that you also have the option of tracking actual costs throughout the year, and can choose the method that results in the highest deduction.
The 2017 standard rate for medical and moving mileage is 17¢ per mile, down from 19¢ in 2016. If you do charitable service driving, this rate remains 14¢ per mile, the same as 2016.
Contact us if you have questions. We're here to help.