Increase to Business Mileage Reimbursement in 2018

From ChamberChoice

The business mileage reimbursement rate is used by some employers for computing employee reimbursement amounts when an employee operates a motor vehicle not owned by the employer for the employer’s business purposes. The Internal Revenue Service (IRS) is responsible for establishing the standard mileage rate.

Recently, the IRS provided that beginning on Jan. 1, 2018, for all miles of business use, the standard mileage rate for transportation or travel expenses is 54.5 cents per mile (up slightly from 53.5 cents in 2017), according to IRS Notice 2018-03.

There are other reasons for which an individual can be reimbursed for mileage such as when rendering gratuitous services to a charitable organization. If an individual or employer has questions about the reimbursement of mileage, or use of a personal vehicle, the advice of tax counsel should be sought.