For those of you who write off mileage on your taxes every year, 2017 brings more changes to the IRS mileage rates and unfortunately not for the better.
Starting January 1st, the standard mileage rates for car usage (including vans and trucks) for 2017 are:
- 53.5 cents per mile for business miles driven
- 17 cents per mile driven for medical/moving purposes
- 14 cents per mile driven in service of charitable organizations
Unfortunately, the IRS mileage rates have dropped mostly across the board as compared to 2016. The business mileage allowance fell a half-cent compared to 2016. Also, note that the medical/moving mileage rate stood at 19 cents in 2016 versus 17 cents in 2017. That is a significant drop if you operate a business that relies upon that rate to help write off expenses accrued over the year.
However, when comparing this year’s rates against those in 2015, only two years previously, the drops are even more glaring. In 2015, business mileage stood at 57.5 cents per mile; that is a significant decrease to note. Again, though, the medical/moving mileage rate has taken an even bigger hit because it stood at 23 cents in 2015. That’s a difference of six cents. Fortunately, the charitable organization’s rate has remained steady, without fluctuation thus far.
For business owners and other entrepreneurs, this continued trend of mileage lowering does not help out at tax time if one is looking to save extra cash with this write-off. Fortunately, though, taxpayers can always instead claim deductions based on the actual costs of vehicle usage instead of sticking with the mileage rates alone. Also, don’t also forget to deduct parking fees as well as tolls (if applicable) accrued during business travel.
As always, Andersons’ tax team is available to review your recent returns and help assess where you can take deductions you may not be currently aware of or how to save money better moving forward, so it stays in your pocket instead of going to the IRS unnecessarily. To get in touch, contact us and schedule a FREE 30-minute strategy session to speak with one of our tax professionals.