IRS Announces 2018 Standard Mileage Rates
The Internal Revenue Service today issued the 2018 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, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 54.5 cents per mile for business miles driven, up 1 cent from the 2017 rate
- 18 cents per mile driven for medical or moving purposes, up 1 cent from the 2017 rate
- 14 cents per mile driven in service of charitable organizations
The business mileage rate increased 1 cent per mile and the medical and moving expense rate increased 1 cent as well. 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.
As always, if you have any questions regarding the above information or any other tax or accounting related issue, please either contact Shurek Accounting & Tax via our website or feel free to leave a comment in the space provided below.