The Internal Revenue Service (IRS) issued updated mileage rates this year, effective January 1, 2020. These standard mileage rates apply for the use of a car (vans, pickups or panel trucks). Taxpayers do have the option of calculating the actual costs of using their vehicle for business as opposed to using the standard mileage rates listed below.
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 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 rather than as an itemized deduction.
You can view [Rev. Proc. 2019-46] for specific rules for using optional standard mileage rates when computing the deductible costs of operating an automobile for business, charitable, medical or moving expenses purposes.