![]() The leading mileage-tracking app will automatically track your drives in the background, and when you classify your drives, the correct mileage rate is applied. Starting in 2017, MileIQ will automatically calculate the value of your drives based on the new standard mileage rates. 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. What does the new standard mileage rate mean for MileIQ users? You can deduct 14 cents per mile for charity reasons. The IRS allows you to deduct miles driven for charity purposes. We've put together an article on how you can take advantage of your medical mileage. The 2017 rate for the medical rate is 17 cents a mile, a dip from 19 cents in 2016. You can also potentially deduct mileage that's related to medical purposes. The IRS requires you record your beginning odometer reading and:Īdditionally, you need to know the total number of miles you drove for business, commuting and personal driving (other than commuting). You're going to need to be able to back up your claims with a mileage log. The IRS isn't just going to take your word for your miles. What records do you need to claim a mileage deduction on taxes? It appears as if gas prices factor to a large degree. The IRS doesn't publicize the exact process of determining how it arrives at the rate. To figure out the mileage rate, the IRS factors in things like average gas prices, depreciation and wear and tear. What expenses are included in the 2017 standard mileage rate? 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. Multiply your business miles by the rate to arrive at your deduction. It's pretty simple to use the 2017 mileage rate to calculate your deduction. The phrase "mileage allowance rate" is often used interchangeably with the "standard mileage rate." The IRS doesn't technically provide a mileage allowance rate each year. They often peg their reimbursement rate to the standard mileage rate. Also, businesses often reimburse mileage to attract and maintain employees. The federal government doesn't require businesses to reimburse employees for mileage. There is no official mileage reimbursement rate. What is the mileage reimbursement rate for 2017? But, many find the standard mileage rate much easier. If you drove 10,000 miles in 2017, you'd have a deduction of $5,350 (10,000 x 53.5 cents). You can also use the actual expense method. Multiply your business miles by the standard mileage rate for your deduction. To calculate your deduction, you can use the standard mileage rate. How can I claim mileage on my tax return? You can take a deduction to help offset these costs. The IRS understands that there is a cost associated with using a personal vehicle for business purposes. The IRS will sometimes even change the mileage rate mid-year if gas prices are volatile enough. That's likely why there was a decrease between 20. Many factors go into the standard mileage rate, including the cost of gas. ![]() The 2017 rate is a dip from the 2016 standard mileage rate of 54 cents per mile. The standard mileage rate 2017 is 53.5 cents per mile for all miles of business use (business standard mileage rate). While the business mileage rate gets most of the attention, you can also write off miles for charity, medical or moving purposes. 14 cents per mile for charity, the same as in 2016.17 cents per mile for medical/moving, down from 19 cents in 2016.53.5 cents per mile for business, down from 54 cents in 2016.The 2017 mileage rate is essential for those who take driving-related deductions. The IRS announced the new standard mileage rate for 2017. This article is for the 2017 mileage rate.Ĭlick for the 2019 standard mileage rate.
0 Comments
Leave a Reply. |