The Internal Revenue Service has issued their 2017 standard mileage rates used to calculate the deductible costs of operating your food truck or other vehicles for your food truck business. As of Jan. 1, 2017, the 2017 standard mileage rates for the use of a car or step van for business will be…
2017 Standard Mileage Rates For Food Trucks
- 53.5 cents per mile for business miles driven (down from 54.05 cents for 2016)
The business mileage rate decreased half a cent per mile from 2016. The 2017 standard mileage rate for business is based on an annual study of the fixed and variable costs of operating a vehicle.
U.S. regular gasoline retail prices are expected to increase from an average of $2.25/gallon (gal) in December to $2.31/gal in the first quarter of 2017. U.S. regular gasoline retail prices are forecast to average $2.38/gal in 2017 and $2.41/gal in 2018.
Food truck owners may get some sticker shock in 2017 as it expected that Americans will shell out $52 billion more over the course of the year compared to 2016 as the national yearly average rises to $2.49 per gallon, according to GasBuddy’s 2017 Fuel Price Outlook.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the 2017 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 business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements are described in Rev. Proc. 2010-51. Notice 2016-79, posted on IRS.gov, contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
If you have any additional questions relating to the 2016 standard mileage rate, speak with your accountant.
