The Internal Revenue Service recently announced the 2017 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business reasons, as well as for charitable, medical, or moving purposes.
Specifically, per Notice 2016-79, the following standard mileage rates for the use of a vehicle will be effective beginning January 1, 2017:
- 53.5 cents per mile for business miles driven, down from 54 cents in 2016;
- 17 cents per mile driven for medical or moving purposes, down from 19 cents in 2016; and
- 14 cents per mile driven in service of charitable organizations.
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.