New Business: Update your 2017 mileage reimbursements
New Business: Update your mileage reimbursements

The standard mileage rate for business driving in 2017 is 53.5¢ a mile, a decrease from the 2016 rate of 54¢ per mile. You can use this rate for cars, vans, pickups, and panel trucks instead of tracking the actual costs of operating those vehicles for business purposes.

In addition to the mileage rate, a separate deduction may be claimed for parking fees, tolls, interest relating to the purchase of a business automobile, and state and local personal property taxes.

The standard business mileage rate isn't applicable to automobiles used for hire, such as taxicabs, or for fleets of automobiles you use simultaneously. One other caution: You can't use the standard rate if the vehicle was depreciated by other than the straight-line method, including bonus depreciation or the Section 179 deduction.

A depreciation component of 25¢ a mile is included in the 2017 business mileage rate (up from 24¢ in 2016). This depreciation reduces your cost basis in the vehicle.


Burzenski and Company, P.C.