IRS Reduces Optional Standard Mileage Rate

The IRS just issued, an optional standard mileage rates, that are used to calculate the deductible costs of operating an automobile for business, medical, moving, and charitable purposes. Effective January 1, 2017, the effective mileage rates for the use of an automobile are as follows:

• 53.5 cents per mile for business miles driven (this is down from 54 cents that was in effect in 2016)

• 17 cents per mile for medical or moving purposes (this is down from 19 cents that was in effect in 2016)

• 14 cents per mile for charitable organizations (no change from the prior year)

As a reminder, instead of using the optional standard mileage rate, taxpayers have the option to calculate the actual costs of using their vehicle for the above purposes.

Disclaimer: This blog is for information purposes only and is not intended to provide investing, accounting, tax or legal advice and should not be relied upon