New IRS Mileage Rates for 2017 for Americans Who Deduct Travel Expenses
A recently published Filemytaxesonline.org article by Frank Ellis provides information to business owners who deduct the mileage of their fleets when filing taxes.
Tax preparation expert Frank Ellis provides insights for businesses that include tax-deductible travel in their annual tax returns. The IRS has change mileage rates in 2017 for business owners who run fleets of vehicles. Oil prices, inflation, and consumption are factored into the most recent changes. The new tax deduction rates go into effect on January 1.
Standard mileage rate changes are listed for standard vehicles such as cars, vans, pickups, and panel trucks. Ellis says the rate for miles traveled has gone down by half a cent. There are also changes for vehicles used for moving or medical purposes. Mileage driven when servicing a charity has not changed.
The author also explains the science around the IRS changes. An annual study is completed by the agency, he says to arrive at the fairest rates. Oil and gas prices, insurance premiums, and vehicle maintenance costs are just some of the factors used to adjust the tax rates.
Exclusions that prevent one from claiming tax back on business miles traveled are highlighted as well. These include having used the Modified Accelerated Cost Recovery System and a limit on applying the standard rate to four automobiles at any given time. In addition, Ellis lists a few important figures to use when calculating travel tax. A one-cent rise from 2016 and maximum standard cost changes based on the type of vehicle is also different in 2017.
Standard rates only apply to what is spent by employers on reimbursing workers for fuel expenses incurred for business purposes. Knowing the most recent adjustments, the author says, can help save cash. He also reveals that TurboTax software calculates mileage rate deductions automatically. The system asks specific questions and helps file taxes based on the answers. The author provides direct link to the platform so readers can get started.
Learn more at http://filemytaxesonline.org/irs-mileage-rate-change/.
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
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