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Zaher Fallahi, CPA; 2017 Standard Mileage Rates for Business, Medical and Moving Announced

posted Dec 13, 2016, 11:09 PM by Zaher Fallahi

WASHINGTON — The IRS today issued the 2017 optional standard mileage rates used to calculate the deductible costs of using an automobile for business, charitable, medical or moving purposes.  Effective January 1, 2017, the standard mileage rates for the use of vehicles (car, vans, pickups or panel trucks) will be as follows:

 

a) 53.5 cents per mile for business miles driven, down from 54 cents for 2016

b) 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016

c) 14 cents per mile driven in service of charitable organizations

 

The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016. The charitable rate is set by statute and remains the same.  The standard mileage rate for business is based on an annual study of the fixed and variable costs of using an automobile. The rate for medical and moving purposes is based on the variable costs.

 

Taxpayers always have the option of calculating the actual costs of using their vehicle instead of using the standard mileage rates.

 

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for the vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. These and other requirements are described in  Rev. Proc. 2010-51Notice 2016-79, posted today on IRS.gov.

 

Zaher Fallahi, CPA, JD, has been rated top tax attorney. Telephones:  (310) 719-1040 (Los Angeles), ( 714) 546-4272 (Orange County) or e-mail taxattorney@zfcpa.com

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