The IRS issued the 2017 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2017, the standard mileage rates for the use of a car, van, pickup or panel truck will be: (1) 53.5 cents per mile for business miles driven, down from 54 cents in 2016, (2) 17 cents per mile driven for medical or moving purposes, down from 19 cents per mile from 2016, and (3) 14 cents per mile driven in service of charitable organizations (the same as last year). Besides the standard mileage rates, Notice 2016-79, also includes the maximum standard automobile cost ($27,900 for automobiles (excluding trucks and vans) or $31,300 for trucks and vans) that may be used in computing an allowance under a fixed and variable rate plan. (IRS News Release, IR-2016-169, December 13, 2016; IRS Notice 2016-79, IRB 2016-52, December 27, 2016.)
Visit our News Library to read more news stories.