The IRS has announced the 2019 standard mileage rates used for calculating deductible costs for operating an automobile for business, charitable, medical or moving purposes.Effective January 1, 2019 the rates are as follows:
- $.58/mile for business use (up 3.5 cents from 2018)
- $.20/mile for medical or moving purposes (up 2 cents from 2018)
- $.14/mile for charitable service (unchanged)
Per the Tax Cut and Jobs Act, taxpayers cannot claim miscellaneous itemized deductions for unreimbursed employee travel expenses, nor can they claim job-related moving expenses (unless they are in the Armed Forces, on active duty, moving under orders or permanent change of duty station.)
Taxpayers can also calculate the actual costs of using their vehicle for business use rather than using the standard mileage rates. However, they may not use the business standard mileage rate after utilizing any depreciation method under the Modified Accelerated Cost Recovery System or after claiming Sec. 179 deduction(s) for that vehicle. The business standard mileage rate cannot be used for more than four (4) vehicles used concurrently.
If you have any questions related to the deductibility of mileage or any other tax matter, please contact your Zinner tax professional.