2018 Standard Mileage Rates

By Zalonka CPA, PLLC |

IRS has announced the new 2018 standard mileage rates for business, charitable, medical and moving travel.

Effective January 1, 2018, the standard mileage rates are as follows:

  • 54.5 cents per mile for business miles driven
  • 18 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The business mileage rate increased one cent per mile and the medical and moving expense rates remained the same. 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 authomobile, including depreciation, by Runzheimer International Research. 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 the the business standard milage 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,

The IRS requires you to have "contemporaneous" written automobile mileage records and record business auto usage every day.. If you do not, you may not deduct expenses for automobile use. You should record date, location, miles driven, and business purpose in some written form (mileage book or other form). 

You can also take parking and tolls in addition to your standard mileage allowance.

You should keep similar written records for medical, moving, and charitable mileage records.

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