2017 Mileage Rates
The IRS has announced the optional 2017 standard mileage rates used to calculate business, medical, and moving expenses.
According to the IRS, the standard mileage rate for use in calculating 2017 business travel expenses is 53.5¢, down from 54¢ in 2016. The new rate also applies where an employer maintains an “accountable” plan for reimbursing employees who use their own automobiles for business-related travel. Additionally, if an employee is provided with a company-owned vehicle for personal use, the employer may be able to use the standard mileage rate to value the benefit.
The new mileage rate applicable to medical travel is 17¢, down from 19¢. Costs of medical travel are potentially deductible on Schedule A of Form 1040 where the taxpayer has had to travel for medical treatment.
The 2¢ reduction also applies to mileage claimed as moving expenses, decreasing this rate to 17¢.
No reduction will apply to the rate allowed for travel related to charitable work, which remains at 14¢ per mile. This rate is set by statute and is not inflation-adjusted.
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