Beginning on January 1st, 2017 the standard mileage rate deduction when traveling for businesses, medical, moving, and charitable purposes will decrease slightly. The rates for business travel are based on an annual study of the fixed and variable costs of operating an automobile, while the rates for medical, moving, or business travel are based solely on variable costs.
The new rates will be:
- 53.5 cents per mile for businesses (down from 54 cents in 2016)
- 17 cents per mile driven for medical or moving purposes (down from 19 cents in 2016)
- 14 cents per mile driven in service of charitable organizations
Taxpayers always have the option of calculating the actual costs of using their vehicles rather than using the standard mileage rate.
Questions? Contact us today.