IRS Reduces Mileage Reimbursement Rate

The Internal Revenue Service has reduced the business mileage reimbursement rate. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating a vehicle. 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, according the agency.

Key Takeaways:

• The Internal Revenue Service has reduced the business mileage reimbursement rate.
• The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating a vehicle.
• Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates, according the agency.

“Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates, according the agency.”

http://www.businessfleet.com/channel/operations/news/story/2017/01/ira-reduces-mileage-reimbursement-rate.aspx