Mileage rates to decrease in 2017
The Internal Revenue Service announced that the optional standard mileage rate used to calculate the cost of operating a vehicle for business purposes will decrease a half-cent in 2017, to 53.5 cents per mile.
The rate for moving or medical travel expenses will also decrease. The new rate of 17 cents per mile is two cents lower than the 2016 rate.
The allowable rate for miles driven in service of charitable organizations is still 14 cents per mile.
Instead of using these rates, taxpayers have the option to calculate the actual expenses incurred when using personal vehicles.
If a taxpayer has taken a Section 179 depreciation deduction on a vehicle or is a fleet owner, standard mileage should not be used. Contact your WK advisor at (573) 442-6171 or (573) 635-6196 for guidance in those situations.
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