12/16/2016

Standard Mileage Rates to Drop in 2017

The standard mileage rate will be 53.5 cents

The Internal Revenue Service (IRS) this week issued the 2017 standard mileage rates used to calculate the deductible costs of operating a car for business, charitable, medical or moving purposes.

Beginning Jan. 1, 2017, the standard mileage rate for the use of a car for business purposes will be 53.5 cents per mile, down from 54 cents per mile in 2016. The standard mileage rate for business dropped half a cent based on an annual study of the fixed and variable costs of operating an automobile. The charitable rate is 14 cents per mile, and is unchanged because it is set by statute.

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

To read the original article from Associations Now, please click here.