The IRS issued the 2018 standard mileage rate in December 2017.
The rate for using a car, van, pickup truck, or panel truck for business use in 2018 is 54.5 cents per mile, up from 53.4 cents per mile in 2017.
For medical or moving purposes, the rate has been raised to 18 cents per mile, while the rate for service to a charitable organization remains unchanged at 14 cents per mile.
The business standard mileage rate treated as depreciation also remains unchanged at 25 cents per mile.
Individuals can use this rate to calculate the deduction for operating an automobile for business use rather than tracking and deducting the actual cost. Businesses can use the rate to determine how much to reimburse employees when they use a vehicle or automobile for business purposes.
Questions about how you or your business will be impacted by this change? Reach out at 859-331-1717.