301.519.9237 exdirector@nesaus.org

12.17.18 – Mitch Reitman

The IRS will raise most 2019 optional standard mileage rates used to calculate the deductible costs ofoperating an automobile for business, charitable, medical or moving purposes. On Jan. 1, the rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 58 cents/mile driven for business use, up 3.5 cents from 2018;
  • 20 cents/mile driven for medical or moving purposes, up two cents from 2018; and,
  • 14 cents/mile driven in service of charitable organizations.

The charitable rate is set by statute and remains unchanged.

The IRS stressed that under reform, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses, nor can they claim a deduction for moving expenses except for members of the Armed Forces on active duty moving under orders to a permanent change of station.

Taxpayers can calculate the actual costs of using their vehicle rather than using the standard mileage rates. They may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Sec. 179 deduction for that vehicle. The business standard mileage rate also cannot be used for more than four vehicles used simultaneously.

Mitch Reitman is the Managing Principal of Reitman Consulting Group, Inc. and can be reached at 817 698-9999