It’s time to revise the standard mileage rate you use to calculate deductible vehicle expenses during 2018 for business, medical and moving mileage. Take a look at what changed:
- Business: Starting Jan. 1, you can reimburse yourself or your employees 54.5 cents per mile when using a personal vehicle for business purposes. This is up 1 cent from last year.
The standard business mileage rate includes allowance for depreciation of 25 cents per mile that reduces your cost basis in your vehicle.
It’s important to keep detailed records to support your deduction for mileage. Information to record includes the date, how many miles you drove, your destination and the purpose of the trip. Keep receipts for parking fees and tolls as well, as you may be able to deduct those expenses even if you use the standard mileage rate.
- Medical and moving: The rate for medical and moving mileage has also increased 1 cent from last year to 18 cents per mile.
- Charity: If you do charitable service driving, this rate remains 14 cents per mile, the same as 2017.
Remember to properly document your mileage to receive full credit for your miles driven. Contact us if you have questions about your standard mileage rate deductions. We’re here to help.