IRS boosts mileage rates

 

Mileage rates
Walton Manors accountants Sterling Accounting are tracking IRS changes to mileage rates.

Wilton Manors accountants Sterling Accounting are always on the lookout for the latest and here’s something to take into account in 2018. The IRS has increased the optional standard mileage rates beginning Jan. 1.

The standard mileage rates will be:

  • 54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017.
  • 18 cents per mile driven for medical or moving purposes, up 1 cent from the rate for 2017.
  • 14 cents per mile driven in service of charitable organizations.

According to CPA Practice Advisor:

The 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.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.  These and other requirements are described in Rev. Proc. 2010-51.

The impact on taxpayers of these rates for next year is not yet clear. That’s because current tax revamping proposals eliminate the mileage deduction for moving expenses and job-related business mileage deductions. The tax proposals would keep deductions for charitable driving and miles driven for business or trade.

The Wilton Manors accountants at Sterling accounting can help you with all your tax needs. Whether you need a simple 1040EZ tax filing or a 1040, our experienced professionals can handle your personal tax needs. We also have plenty of experience with business bookkeeping to help you on that front. And we’re even experts on payroll issues.

 

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