IRS Reduces Business Mileage Reimbursement Rate
30 Mar 2017
Businesses, particularly those with fleets that spend a lot of time on the road these days, could see an increase in automotive related expenses no thanks to a decrease, or reduction, in the business mileage reduction rate the IRS allows for 2017.
The IRS changes for 2017 taxes involve mileage rates as they related to business mileage, medical purposes, and moving purposes. The standard deduction rate for business mileage in cars, vans, pickup trucks, panel trucks, etc. is 54 cents per mile for 2016 taxes. Those rates will decrease to 53.5 cents per mile for 2017.
Medical and moving deductions will also decrease from 19 cents per mile in 2016 to only 17 cents per mile for 2017. Deductions for miles driven on behalf of charitable organizations remains steady at 14 cents per mile for the year.
The more vehicles your business keeps on the road each day, the more profound the impact of these deductions are going to be on your bottom line. There are things you can do, starting now, that will help to offset these new challenges without digging into your profits.
One of the best things you can do for the sake of your business is invest in GPS fleet tracking. Not only can this help to offset the increase in operating expenses for your business vehicles or fleet by reducing fuel consumption, but it can also help you track your mileage more accurately, reduce time spent on paperwork and record keeping, and help you to reduce the total mileage your vehicles travel from day to day throughout the year.
Other financial benefits GPS fleet tracking has to offer include the following:
- Reduction in fuel costs while vehicles idle.
- Planning more fuel-efficient routes.
- Improving dispatch to quickly identify and utilize the closest and most convenient vehicles for job site needs.
- Monitoring driver behavior for costly actions like speeding, excessive idling, and veering from their prescribed routes.
- Monitor drivers to reduce labor costs and overtime pay.
- Automate routine maintenance schedules to keep vehicles in good repair and improve their usefulness to your business.
- Track labor costs more effectively.
All these small savings add up to big savings for your business and can go a long way to offset the increases in costs brought about from these IRS deductions. GPS fleet tracking makes it possible.
To learn more about how GPS fleet tracking can help your business, talk to one of our experts here at LiveViewGPS by calling 1-888-544-0494, or emailing us info@liveviewgps.com or completing our contact us form here.
Comments are closed.