Tags: Sarasota 1099 Preparation, Sarasota Accounting Firm, Sarasota CPA, Sarasota Quickbooks Online, Sarasota Tax Returns

The Internal Revenue Service has issued the 2018 optional standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, new standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 54.5 cents per mile for business miles driven, up from 53.5 cents for 2017.
  • 18 cents per mile driven for medical or moving purposes, 1 cent higher from 2017. (The medical and moving expense deductions may be affected by the pending tax reform legislation)
  • 14 cents per mile driven in service of charitable organizations, unchanged from 2017.
  • 25 cents per mile for the portion of the business standard mileage rate that is treated as depreciation unchanged from 2017.

Click here for Notice 2018-03

Section 1 – provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan.