IRS Issues Standard Mileage Rates for 2018
The IRS has issued 2018 standard mileage rates for taxpayers who utilize automobiles for business, charitable, medical or moving expenses. According to Notice 2018-03, mileage rates, beginning on January 1, 2018, will be as follows:
- 54.5 cents for every mile of business travel driven;
- 18 cents per mile driven for medical or moving purposes; and
- 14 cents per mile driven in service of charitable organizations.
In addition to automobile usage, rates also apply to taxpayers who use vans, pickups or panel trucks for the aforementioned deductible expenses.
2018 rates for business, medical and moving expenses represent an increase of 1 cent per mile compared to 2017 rates. The charitable rate is set by statute and remains unchanged.
Mileage rates related to business were determined based on an independent contract study responsible for assessing both fixed and variable costs associated with operating a vehicle. The rate for medical and moving purposes is based on variable costs.
Specific provisions related to standard mileage usage, including coordination with depreciation methods and limits on multi-vehicle usage, are described in Rev. Proc. 2010-51.
If you have questions related to the IRS standard mileage rates and applicable deductions for 2018, please contact the tax professionals at MFA.
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