The Internal Revenue Service has announced new mileage rates for 2018 for use in calculating reimbursements or deductions for tax purposes:
- Business use: 54.5 cents a mile, up from 53.5 cents a mile in 2017
- Medical use: 18 cents a mile, up from 17 cents a mile in 2017
- Moving use: 18 cents a mile, up from 17 cents a mile in 2017
- Charitable use: 14 cents a mile, the same as in 2017
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 $27,300
- For trucks and vans, the standard vehicle cost may not exceed $31,000
The original IRS Notice 2018-03 can be found on the IRS website: irs.gov/pub/irs-drop/n-18-03.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.
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