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IRS announces 2017 standard mileage rates for business, medical and moving

February 4, 2017

IRS News, taxes, small business, standard mileage

The Internal Revenue Service has issued the 2017 optional standard mileage rates. Beginning the first of the year, the rates for the use of a car, van, pickup or panel truck are:

  • 53.5 cents per mile for business miles driven (down from 54 cents in 2016)
  • 17 cents per mile driven for medical or moving purposes (down from 19 cents in 2016)
  • 14 cents per mile driven in service of charitable organizations (fixed by Congress, never adjusted for inflation)

While the business mileage rate gets most of the attention, taxpayers may also write off miles for charity, medical or moving purposes. You can also deduct parking fees and tolls.

Tip: TRACK YOUR MILES using the Laborde Mobile App, or just search the Apple or Google Play store for “Laborde CPA” download the free app, and you’re ready to go!

Volunteer or Charity Work Mileage Deduction:

When you itemize your personal deductions your charitable contributions are also deductible. Any out-of pocket unreimbursed expenses directly related to the use of your car for the services of giving to a charitable organization are considered a charitable contribution. For example, if you drive to a local hospital or your favorite non-profit once a week to volunteer, you can deduct that mileage.

Medical Mileage Deductions:

Driving to and from doctor visits, hospitals, labs and pharmacies can all accrue mileage that can count toward a medical deduction. If your medical expenses combined are in excess of 10 percent of your adjusted gross income, they can be deducted.

Other Tips

If you have an outside office, you cannot deduct your mileage to and from your home. However, travel to secondary work sites, conferences, training sessions, errands to pick up supplies, or even looking for a job can all be deducted. That said, if you are working from home and using the home office deduction, all business mileage can be deducted, including business-related trips to and from your home.

These and other requirements are described in Rev. Proc. 2010-51. Notice 2016-79, posted on IRS.gov.