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2017 Standard Mileage Rates for Business, Medical and Moving Announced

WASHINGTON — 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 be:

• 53.5 cents per mile for business miles driven, down from 54 cents for 2016
• 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016
• 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.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation
method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section
179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more
than four vehicles used simultaneously.

These and other requirements are described in Rev. Proc. 2010-51. Notice 2016-79, posted today on
IRS.gov, contains the standard mileage rates, the amount a taxpayer must use in calculating reductions
to basis for depreciation taken under the business standard mileage rate, and the maximum standard
automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate
plan.

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