Mileage 2019The Internal Revenue Service (IRS) issued updated mileage rates this year, effective January 1, 2019. These standard rates apply for the use of a car (vans, pickups or panel trucks).

Description

Rate per cents per mile

2018

2019

Business Purposes

 54.5

 58

Medical or Moving Purposes

 18

 20

In service of charitable organizations

 14

 14

These 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:

  • Expenses for use of an automobile as part of a move except for members of the Armed Forces on activity duty who move under a military order and incident to a permanent change of station.
  • Unreimbursed employee travel expenses, including business mileage.  Members of a reserve component of the Armed Forces, certain state or local government officials and certain performing artists may deduct unreimbursed travel expenses, including business mileage as an adjustment to total income.

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

  • Notice 2019-02 – 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 – informs taxpayers and employers about changes from the Tax Cuts and Jobs Act regarding the deduction for move-related vehicle expenses and un-reimbursed employee travel expenses.

If you have questions, please contact one of our tax professionals at 401-831-0200.