WATERFORD, Wis., Dec. 13, 2016 /PRNewswire/ -- Through data research and analytics from Runzheimer, a business vehicle, relocation information and expense management services provider, the Internal Revenue Service (IRS) today announced the new national business mileage deduction rate of 53.5 cents for U.S. business drivers, which goes into effect Jan. 1, 2017.
The 2017 rate is a half a cent decrease from the current rate of 54 cents-per-mile. This is just the fifth time in the last 16 years that the rate has fallen instead of rising.
"Factors contributing to the decision on this year's slight decrease in the Safe Harbor reimbursement rate include declining fuel prices, which were largely offset by rising vehicle insurance and maintenance costs," said Donna Koppensteiner, SVP of Business Development at Runzheimer.
The IRS has utilized Runzheimer data and research to calculate the mileage deduction rate since 1980, referencing numerous amounts of data elements, such as vehicle depreciation, auto insurance premiums, fuel and maintenance rates. Runzheimer is proud of its relationship with the IRS that spans more than 35 years.
"The IRS safe harbor rate establishes a standard rate on the amount an individual can deduct for business vehicle expenses," said Koppensteiner. "The IRS uses our research, data and recommendation to construct an accurate standard mileage rate."
The new standard mileage rate is the amount a U.S. taxpayer and companies can deduct on a 2017 tax return for recorded business miles in a personal vehicle.
Founded in 1933, Runzheimer connects people, companies and their vehicles in ways that drive superior productivity and impactful business intelligence. We provide expertise, technology and world class customer service that empowers companies to move their businesses forward with confidence. As a result, our customers are able to better manage cost, reduce business risk and increase employee satisfaction in the mobile workplace. Runzheimer is the leader in workforce mobility programs, designing and delivering fair, accurate and defensible™ business vehicle programs, relocation information services and business expense solutions. We are highly renowned and recognized for our market leading service delivery focus, an integral part of our corporate culture.