Mileage Rates to Change in 2017

The IRS has announced mileage rates for 2017, some of which are lower than 2016 rates. Here are some of the details from Journal of Accountancy:

• For business use of a car, van, pickup truck, or panel truck, the rate for 2017 will be 53.5 cents per mile, down from 54 cents per mile in 2016. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.
• Driving for medical or moving purposes may be deducted at 17 cents per mile, which is two cents lower than for 2016. The rate for service to a charitable organization is unchanged, set by statute at 14 cents per mile.
• The portion of the business standard mileage rate that is treated as depreciation will be 25 cents per mile for 2017, one cent higher than for 2016.

To read more, see the article from Journal of Accountancy. If you have questions, please speak with one of our CPAs.