IRS provides 2017 Standard mile rate

The Internal Revenue Service today issued the 2017 optional standard mileage rates for business, medical and charitable purposes All new rates are effective January 1, 2017. The rates specific to the use are as follows:

• 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

Taxpayers are allowed to calculate the actual costs of using their vehicle but must allocate personal miles against business miles in those calculations.

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.

Other information regarding the rules for deducting vehicle expenses can be found at Rev. Proc. 2010-51. Notice 2016-79, posted today on IRS.gov, contains the standard mileage rates.

If you have questions about how this may affect your specific tax situation do not hesitate to contact Raffensperger, Martin & Finkenbiner, LLC at (717) 337-1414.