The 2018 mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes have increased slightly from last year, or remained unchanged. Specifically, as of Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:
– 54.5 cents per mile for business miles driven, up one cent from 2017;
– 18 cents per mile driven for medical or moving purposes, up one cent from 2017; and
– 14 cents per mile driven in service of charitable organizations
The IRS 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. The charitable rate is based on a statute.
Note that taxpayers can calculate the actual costs of using their vehicle rather than using the standard mileage rates.
The rates are important because most employers use the standard rate for business as the reimbursement rate for employees who drive their vehicles in connection with performing work. However, employers should note that, just like deductions for taxpayers, employees can opt to calculate their actual mileage expenses instead of using the IRS rate.
Upcoming Seminar: Workplace Investigations
Tuesday, May 22, 2018
Location: Ervin Cohen & Jessup LLP
Registration time: 9:00 AM
Seminar time: 9:30 AM – 11:00 AM
Presented by: Kelly O. Scott
Parking Validation & Continental Breakfast Provided
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