Standard Mileage Rates for 2018

By Jessie Jackson

Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile. Standard mileage for business use of an automobile increases to 54.5 cents per mile, which is a 1 cent increase from 2017. For medical or moving expenses, the rate is 18 cents per mile, a 1 cent increase from 2017. The standard mileage rate allowed for services to charitable organizations is 14 cents per mile.Alternatively, rather than using the standard mileage rates, taxpayers may instead use their actual costs if they maintain adequate records and can substantiate their expenses. The rules for substantiating these amounts appear in Rev. Proc. 2010-51.

For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 25 cents per mile for 2018, which is no change from 2017.

If you have any further questions please contact Jessie Jackson  at Hall Albright Garrison & Barnes P.C. (jjackson@hallalbright.com).