The IRS has released their updated optional standard mileage rates for 2018. These rates are used to calculate the deductible cost of operating an automobile for business, charitable, medical, or moving purposes. As of January 1, 2018, the standard mileage rates include the following:
- Driving for business use of a car, van, pickup truck, or panel truck, the 2018 rate is 54.5 cents per mile (up one cent from the 2017 rate).
- Driving for medical or moving purposes may be deducted at 18 cents per mile (up one cent from the 2017 rate). The rate for service to a charitable organization is unchanged, set by statute at 14 cents per mile.
- Deducting the business standard mileage rate that is treated as depreciation is 25 cents per mile for 2018 (the same as the 2017 rate).
Please feel free to contact your Blackman & Sloop advisor with any questions you might have about mileage rates.