Effective for deductible costs paid or incurred on or after January 1, 1997, the Department of Taxation is adopting federal Revenue Procedure 96-63, which provides optional standard mileage rates for employees, self-employed individuals, or other taxpayers to use in computing deductions for operating a passenger automobile for business, charitable, medical, or moving expense purposes. The standard mileage rates which follow the IRS rates are summarized as follows:
RE: Adoption of IRS Optional Standard Mileage Rates
|Business||31.5 cents per mile|
|Rural Mail Carrier||47.25 cents per mile|
|Charitable||12 cents per mile|
|Medical and Moving||10 cents per mile|
To claim the allowable standard mileage for business or rural mail carrier purposes, use federal Form 2106 - "Employee Business Expenses" or federal Form 2106-EZ - "Unreimbursed Employee Business Expenses," as the case may be. If you do not have to file either Form 2106 or 2106-EZ, see the federal instructions to properly claim the unreimbursed mileage (i.e., travel or transportation expenses) on federal Schedule A - "Itemized Deductions."
To claim the allowable standard mileage for charitable or medical purposes, refer to the 1997 federal instructions for Form 1040 (Schedule A - "Itemized Deductions"). The allowable standard mileage amount must be shown on Schedule A.
Hawaii Form N-139 - "Moving Expenses -- 1997" must be used to claim the mileage for moving expenses.
RAY K. KAMIKAWA
Director of Taxation
HRS Section Explained: HRS Section 235-2.3(a)