IRS Standard Mileage Rate 2017: Business, Medical & Charity Drives
The IRS announced the new standard mileage rate for 2017. The mileage rate 2017 is important for those who take driving-related deductions.
The 2017 standard mileage rate will be:
- 53.5 cents per mile for business, down from 54 cents in 2016
- 17 cents per mile for medical/moving, down from 19 cents in 2016
- 14 cents per mile for charity, the same as in 2016
While the business mileage rate gets most of the attention, you can also write off miles for charity, medical or moving purposes.
Standard Mileage Rate 2017 Business, Charity, Medical & Moving
The standard mileage rate 2017 is 53.5 cents per mile for all miles of business use (business standard mileage rate). This is a dip from the 2016 standard mileage rate of 54 cents per mile.
There are many factors that go into the standard mileage rate, including the cost of gas. That’s likely why there was a decrease between 2016 and 2017. The IRS will sometimes even change the mileage rate mid-year if gas prices are volatile enough.
The IRS mileage rate can change over time and sometimes, changes mid-year. Here’s a list of how it’s changed over time.
|Year||Rate per Mile||Dates Covered|
|2017||53.5 cents||1/01/17 - 12/31/17|
|2016||54 cents||1/01/16 - 12/31/16|
|2015||57.5 cents||1/01/15 - 12/31/15|
|2014||56 cents||1/01/14 - 12/31/14|
|2013||56 cents||1/01/13 - 12/31/13|
|2012||55.5 cents||1/01/12 - 12/31/12|
|2011||55.5 cents||7/01/11 - 12/31/11|
|2011||51 cents||1/01/11 - 6/30/11|
|2010||50 cents||1/01/10 - 12/31/10|
What Is the Standard Mileage Rate?
The IRS understands that there is a cost associated with using a personal vehicle for business purposes. You can take a deduction to help offset these costs.
To calculate your deduction, you can use the actual expense method or the standard mileage rate. This rate allows you to easily find the amount you can deduct for business use of a personal vehicle. Using this rate is by far the simplest way to calculate your mileage deduction.
How To Use The IRS Mileage Rate 2017
It’s pretty simple to use the 2017 mileage rate to calculate your deduction. Multiply your business miles by the rate to arrive at your deduction. For example, the 2017 rate is 53.5 cents per mile and if you drive 10,000 business miles in 2017, your deduction would be $5,350 (10,000 x .535).
What Goes Into The Mileage Rate 2017?
To figure out the mileage rate, the IRS factors in things like average gas prices, depreciation and wear and tear. The IRS doesn’t publicize the exact process of determining how it arrives at the rate. It appears as if gas prices factor in to a large degree.
IRS Mileage Rate 2017: What Records Do You Need
The IRS isn’t just going to take your word for your miles. You’re going to need to be able to back up your claims with a mileage log.
The IRS requires you record your beginning odometer reading and:
- Your mileage
- The dates of your business trips
- The places you drove for business
- The business purpose of your trip.
Additionally, you need to know the total number of miles you drove for business, commuting and personal driving (other than commuting).
Medical Mileage Rate for 2017
You can also potentially deduct mileage that’s related to medical purposes. The 2017 rate for medical rate is 17 cents a mile, a dip from 19 cents in 2016. We’ve put together an article on how you can take advantage of your medical mileage.
Here’s how the medical mileage rate has changed over time:
|Year||Rate per Mile||Dates Covered|
|2017||17 cents||1/01/10 - 12/31/10|
|2016||19 cents||1/01/16 - 12/31/16|
|2015||23 cents||1/01/15 - 12/31/15|
|2014||23.5 cents||1/01/14 - 12/31/14|
|2013||24 cents||1/01/13 - 12/31/13|
|2012||23 cents||1/01/12 - 12/31/12|
|2011||23.5 cents||7/01/11 - 12/31/11|
|2011||19 cents||1/01/11 - 6/30/11|
|2010||16.5 cents||1/01/10 - 12/31/10|
Charity Mileage Rate for 2017
The IRS allows you to deduct miles driven for charity purposes. You can deduct 14 cents per mile for charity reasons. This rate hasn’t changed since 1997.
What Does The New Mileage Rate Mean for MileIQ Users?
If you’re already using MileIQ to automatically track, log and calculate the value of your miles, you can rest easy … we have you covered.
Starting in 2017, MileIQ will automatically calculate the value of your drives based on the new standard mileage rates. The leading mileage-tracking app will automatically track your drives in the background and when you classify your drives, the correct mileage rate will be applied. That means your 2017 business drives will properly valued at 53.5 cents per mile, medical/moving miles at 17 cents per mile and 14 cents for every charity mile.
You can also quickly send yourself or your tax professional detailed mileage logs. These will include the time, date, distance of drives, the values based on the new 2017 mileage rates and any additional information you added like the business purpose.
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