What is the mileage rate for 2017? The IRS standard mileage rate for business has been decreased. As of January 1, 2017, the rate is 53.5 cents per mile, which is down from 54 cents.
Are you using a mileage tracker or mobile app? If you’re tracking your miles driven with one of these tools, make sure they’re updated with the new rate. And if you’re not using one, consider it.
When you’re eligible to deduct car expenses for business, the IRS offers two choices — the standard mileage rate method or the actual expense method. If using the standard mileage method, the IRS wants accurate and timely records. Keep a daily, detailed log at the time the mileage is driven. Include the:
- Date and time.
- Purpose of business and client name.
- Address of where you start and end your trip.
- Your odometer reading at the start and end of each trip.
Recordkeeping can be tedious so consider tools that will help you. Accuracy is important to the IRS, and efficiency and time is important to you. Evaluate the method you use and consider options, such as:
- Mileage Log: A paper log or journal can be kept in your car. Keep your log in the same place so it’s not easily lost or misplaced. Also, keep it visible so you remember to make your daily entries.
- Apps: These track, calculate and log your mileage for each trip. There are dozens of free and inexpensive apps available. They can be used on smartphone devices, which make them easy to use and readily accessible. Apps will automate your recordkeeping and also help decrease manual calculation errors.
From meetings with clients to a trip to the business supply store, your business miles (and deductions) add up. Record these miles to meet IRS standards, and make your mileage count.