The IRS's business
mileage deduction rate for 2018 has increased. Starting Jan. 1, U.S.
taxpayers and companies will receive a deduction rate of 54.5 cents for
recorded business mileage on a personal car, up one cent from last year's 53.5
cents. The increase is due to higher fuel costs, according to Runzheimer, a business
vehicle reimbursement solutions provider that calculates the rate with the IRS.
"All of the ownership
and operating costs have been relatively stable, with fuel costs showing the
greatest increase, offset by small decreases in vehicle ownership costs." said
Donna Koppensteiner-Reidy, SVP of business development and marketing at Runzheimer.