The Internal Revenue Service recently issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile (also vans, pickups or panel trucks) for small business use.
Beginning Jan. 1, 2018, the standard mileage rates for the use of a car will be:
54.5¢ per mile of business travel driven, up 1¢ from the rate for 2017.
18¢ per mile driven for medical or moving purposes, up 1¢ from the rate for 2017.
14¢ per mile driven in service of charitable organizations.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.