On December 13, 2016, the Internal Revenue Service issued the 2017 optional standard mileage rates used to calculate the costs of operating an automobile for business, medical or moving expenses. These rates are effective January 1, 2017.
Taxpayers always have the option of calculating actual costs of using their vehicle rather than the standard mileage.
Taxpayers may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a section 179 deduction for that vehicle. In addition, the standard mileage cannot be used for more than four vehicles used simultaneously.