On December 14, 2016 the IRS announced that the standard mileage rates have been lowered for 2017 driving expenses. Effective January 1, 2017, the standard mileage rates are as follows:
- business miles: 53.5 cents per mile driven (down 0.5 cents from 2016)
- medical/moving miles: 17 cents per mile driven (down 2 cents from 2016)
- charitable organization miles: 14 cents per mile driven (no change from 2016)
The IRS states that taxpayers who use any depreciation method under the Modified Accelerated Cost Recovery System may not use the business mileage standard rate. The business mileage standard rate also cannot be used by taxpayers after claiming a Section 179 deduction. Additionally, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
As always, taxpayers can choose to use actual costs of using their vehicles for business purposes, rather than utilizing the standard rate.
On how this may impact your personal or business tax preparation, please call Heckman & Associates at 206-329-4740!