The business rate drops to 53.5 cents per mile, down from 54 cents this year. The rate moves down to 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016 The charitable rate of 14 cents per mile, set by statute, remains unchanged.
The IRS notes taxpayers can choose to calculate actual costs of operating their vehicles instead of utilizing the standard rates.
The standard business mileage rate cannot be used for vehicle if depreciation methods under the Modified Accelerated Cost Recovery System (MACRS) are utilized or after the taxpayer's claiming a Section 179 deduction for that vehicle. Taxpayers are also limited to claiming the standard rate for four or fewer vehicles.
These and other requirements are described in Rev. Proc. 2010-51. Notice 2016-79, posted on IRS.gov, contains the standard mileage rates.Last modified on Tuesday, 20 December 2016