Standard Mileage Rates for 2018

The Internal Revenue Service (IRS) issued updated mileage rates this year, effective January 1, 2018. These standard rates apply for the use of a car (vans, pickups or panel trucks).

Description

Rate per cents per mile

2017

2018

Business Purposes

 53.5

 54.5

Medical or Moving Purposes

 17

 18

In service of charitable organizations

 14

 14

The following deductions have been suspended under the Tax Cuts and Job Act for 2018 for tax years beginning after December 31, 2017 through December 31, 2025:

  • No deduction is allowed for use of an automobile as part of a move
  • The business standard mileage rate cannot be used to claim an itemized deduction for un-reimbursed employee travel expenses, unless the taxpayer is a member of the Armed Forces or active duty who moves pursuant to a military order and incident to a permanent change of station.
  • Unreimbursed employee travel expenses, including business mileage is no longer deductible as a miscellaneous itemized deduction

To view the specific notices related to this information click on the links below:

  • Notice 2018-03 – 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.
  • Notice 2018-42 – provides information to taxpayers and employers about changes from the Tax Cuts and Jobs Act regarding the deduction for move-related vehicle expenses and un-reimbursed employee expenses.

Should you have any questions, please contact one of our tax professionals at 401-831-0200 or contactus@pgco.com .