January 14, 2019
The Internal Revenue Services (IRS) recently released updated optional standard mileage rates for 2019. These rates are used to calculate the deductible cost of operating an automobile for business, charitable, medical, or moving purposes. The term “automobile” includes any car, van, pickup, or panel truck. As of January 1, 2019, the standard mileage rates are as follows:
- For business use of an automobile, the 2019 rate is 58 cents per mile (up 3.5 cents from the 2018 rate).
Please note that since the Tax Cuts and Jobs Act (TCJA) suspended the miscellaneous itemized deduction for unreimbursed employee business expenses from 2018 to 2025, the standard mileage rate cannot currently be used to claim a deduction for those expenses. The TCJA did, however, include an exception for members of the U.S. armed forces reserves, state or local government officials who are paid on a fee basis, and some performing artists.
- Driving for medical or moving purposes may be deducted at 20 cents per mile (up 2 cents from the 2018 rate).
Please note that the TCJA suspended the moving expense deduction for individual taxpayers from 2018 to 2025. However, the tax code update did include an exception for members of the U.S. armed forces on active duty whose moves are precipitated by a military order.
- The rate for service to a charitable organization is unchanged, set by statute at 14 cents per mile.
- The portion of the business standard mileage rate that is treated as depreciation is 26 cents per mile for 2019 (up 1 cent from the 2018 rate).
Please feel free to contact us with any questions you might have about mileage rates.