Use the standard mileage rate to figure the deductible costs of operating your car for business purposes. If you do not use the standard mileage rate, you may be able to deduct your actual car expenses. Beginning Jan. 1, 2017, the standard mileage rates are:
2017 | 2016 | |
Business mileage | $0.54 | $0.54 |
Moving | $0.17 | $0.19 |
Charitable | $0.14 | $0.14 |
Medical | $0.17 | $0.19 |
The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
For more links and resources from the IRS on mileage rates, click here.