The Internal Revenue Service has announced a new IRS mileage rate 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 mileage rate 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
