The IRS has released the 2017 optional standard mileage rates that taxpayers can use to compute deductible costs of operating automobiles (including vans, pickups and panel trucks) for business, medical, moving and charitable purposes.
The 2017 standard mileage rate has:
- Decreased to 53.5 cents per mile for business use
- Decreased to 17 cents per mile for medical and moving uses
- Remains at 14 cents per mile for charitable uses
For purposes of computing the allowance under an FAVR plan, the standard automobile cost may not exceed $27,900 ($31,300 for trucks and vans).
The updated rates are effective as of January 1, 2017.