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CERTIFIED PUBLIC ACCOUNTANTS • SINCE 1977

 

Tips for Keeping Up With Mileage

There are only five months left in this year. Seems crazy. But, hopefully you were already in the loop on mileage rates for 2018. If not, here is a summary of what you can expect when filing taxes in 2018.

There are only five months left in this year. Seems crazy. But, hopefully you were already in the loop on mileage rates for 2018. If not, here is a summary of what you can expect when filing taxes in 2018.

On January 1, the Internal Revenue Service (IRS) issued the 2018 optional standard mileage rates, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

  • 5 cents per mile for business miles driven (up from 53.5 cents in 2017)
  • 18 cents per mile driven for medical or moving purposes (up from 17 cents in 2017)
  • 14 cents per mile driven in service of charitable organizations (currently fixed by Congress)

Why is there a difference in the rates for business and medical or moving purposes? The standard mileage rate for business is calculated using an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil while the rate for medical and moving purposes is based on the variable costs, such as gas and oil.

The optional standard mileage rates are used to calculate the amount of a deductible business, moving, medical or charitable expense (miles driven times the applicable rate).

If you use your car for business, personal use and charity work, keep up with what is for business and what is for charity, including details.

 


About JHM Certified Public Accountants
Since its founding in 1977, JHM Certified Public Accountants has grown to specialize in accounting, auditing and tax services to nonprofit organizations. Additionally the firm serves a diverse range of business clients throughout the Southeast Tennessee/North Georgia region, ranging from small start-ups to large corporations, with a significant concentration of clients in the construction, hospital, nonprofit / governmental and assisted housing industries.
 

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