Working with Runzheimer the Internal Revenue Service (IRS) today announced the new national, optional business mileage deduction rate of 54.5¢, which goes into effect January 1, 2018.
The 2018 rate represents a 1 cent increase from the current 2017 rate of 53.5 cents-per-mile.
“Across the US the average costs of owning and operating a vehicle rose just one cent over the last reporting period for this cost analysis. All of the ownership and operating costs have been relatively stable, with fuel costs showing the greatest increase, offset by small decreases in vehicle ownership costs,” said Donna Koppensteiner-Reidy, Senior Vice President of Business Development and Marketing at Runzheimer.
Since 1980, the IRS has worked with Runzheimer to calculate the business mileage deduction rate, using a consistent method and statistical analysis of vehicle cost components. Using detailed data from across the nation, the rate measures auto insurance premiums, maintenance costs, vehicle depreciation, fuel and other costs that reflect the movement of prices in the marketplace.
“The new rate may be used by taxpayers to compute the maximum deductible costs of operating a passenger vehicle for business purposes, as an alternative to tracking and deducting their actual costs. Many businesses also use this rate to create budgets and to reimburse their employees for reasonable business vehicle costs,” according to Mike Bassi, Director of Strategic Partnerships.
U.S. taxpayers and companies can deduct this new standard mileage rate amount on their 2018 tax return for recorded business miles in a personal vehicle.
For more information about Runzheimer’s IRS-compliant, business vehicle reimbursement solutions, please visit www.runzheimer.com.