by Barry L Weller, EA
Beginning on January 1, 2017, the standard mileage rates for the use of a car, van, pickup or panel truck have decreased by ½ cent for business use. The decrease for medical and moving purposes have decrease by 2 cents per mile while the rate for miles driven in the service of charitable organizations remains unchanged. The standard mileage rates set by the IRS for 2017 are:
53.5 cents per mile for business miles driven
17.0 cents per mile driven for medical or moving purposes
14.0 cents per mile driven in service of charitable organizations
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under MACRS or after claiming a section 179 deduction for that vehicle. Additionally, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. For business use, taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Taxpayers always have the option of calculating actual costs of using their vehicle rather than using the standard mileage rates.
Barry L Weller, EA is the president of Barry Weller & Associates with offices at 216 E Philadelphia Ave, Boyertown, PA 19512 Phone (610) 367-8280 He is an enrolled agent, licensed to represent taxpayers before the IRS. (revised 12/16/2016)