THE WANDERING TAX PRO
Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 40-year veteran tax professional Robert D Flach.
Tuesday, December 13, 2016
THIS JUST IN - 2017 STANDARD MILEAGE ALLOWANCE RATES
The IRS has just
announced the new standard mileage allowance rates for calendar year 2017
(highlights are mine) -
“The Internal Revenue Service today issued the 2017 optional standard
mileage rates used to calculate the deductible costs of operating an automobile
for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2017, the standard
mileage rates for the use of a car (also vans, pickups or panel trucks) will
53.5 cents per mile for business
miles driven, down from 54 cents for
17 cents per mile driven for
medical or moving purposes, down from 19 cents for
14 cents per mile driven in service
of charitable organizations
The business mileage rate decreased half a cent per mile and the
medical and moving expense rates each dropped
2 cents per mile from 2016. The charitable rate is set by statute and
remains unchanged. 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.”
FYI – the idiots
in Congress have not changed the charitable mileage rate since 1998!