Articles

IRS Lowers Standard Mileage Rates in 2017 by Andreea Cioara, CPA


Posted on December 21, 2016 by Andreea Cioara-Schinas

Employees and self-employed taxpayers who use their cars, vans or trucks for business purposes in 2017 may use a 53.5 cents per mile rate to calculate the deductible costs of operating those vehicles. This optional standard mileage rate, which is a slight decrease from the prior year, only applies to taxpayers who do not claim accelerated depreciation on a vehicle or a fleet of more than four vehicles used simultaneously.

In addition, effective January 1, 2017, taxpayers may deduct 17 cents per mile, two cents lower than in 2016, when using their vehicles for transportation for medical or moving purposes. The mileage rate for personal use of a vehicle for charitable work remains unchanged at 14 cents per mile.

About the Author: Andreea Cioara Schinas, CPA, is a director with Berkowitz Pollack Brant’s Tax Services practice, where she provides corporate tax planning for clients through all phases of business operations, including formation, debt restructuring, succession planning and business sales and acquisitions. She can be reached in the CPA firm’s Ft. Lauderdale, Fla., office at (954) 712-7000, or via email at info@bpbcpa.com.