The Internal Revenue Service has announced new mileage rates for 2017 for use in calculating reimbursements or deductions for tax purposes:

• Business use: 53.5 cents a mile, down from 54 cents a mile in 2016
• Medical use: 17 cents a mile, down from 19 cents a mile in 2016
• Moving use: 17 cents a mile, down from 19 cents a mile in 2016
• Charitable use: 14 cents a mile

In addition, the IRS has adjusted the standard vehicle cost for calculating FAVR (Fixed and Variable Rate) programs:

• For automobiles, the standard vehicle cost may not exceed $27,900
• For trucks and vans, the standard vehicle cost may not exceed $31,300

The original IRS Notice 2016-79 can be found on the IRS website: irs.gov/pub/irs-drop/n-16-79.pdf

Let’s connect and we’ll show you how a FAVR (Fixed and Variable Rate) plan can reduce cost when compared to the IRS rate for business use.

About the Author

Jim Doherty

Jim Doherty has developed FAVR plans with many highly visible companies large and small, and has routinely documented significant program savings, heightened driver acceptance and satisfaction, and reduced fleet liability with greater control and administrative efficiency. Let's Connect