IRS Releases 2017 Standard Mileage Rates
IRS lowers the Standard Mileage Rate for 2017. Beginning January 1st, 2017 the standard mileage rates for the use of a vehicle will be:
Business Miles – 53.5 cents per mile, which is down from 54 cents in 2016.
Medical and Moving Miles- 17 cents per mile, which is down from 19 cents in 2016.
Charitable Miles- 14 cents per mile, which remains the same from 2016.
So, it’s super important to track every mile and be sure to write down the date and business purpose of the trip. You can use an old fashioned calendar, or a cool new app like MileIQ or something similar to track it by GPS.
Also, if you have business miles driven then you need to make some decisions as to whether you want to claim the standard mileage deduction or if the actual expenses method is more beneficial. Most tax software can easily determine which deduction is best for your situation.
However, there is one instance that extra consideration should be taken into account between the standard mileage deduction and the actual expense deduction. This is when a new/used vehicle is being placed into service for the first time in that business. The rule is if you decide to use the actual expense method of accounting for the business miles, then you must choose this method every year thereafter, even if it’s less beneficial than the standard mileage rate. If you choose to use the standard mileage rate for the first year, you have the flexibility of going back and forth between methods and choosing the most beneficial method for that year.