THE WANDERING TAX PRO
Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 45+-year veteran tax professional Robert D Flach.
Friday, December 14, 2018
THIS JUST IN - MORE BREAKING NEWS!
The IRS has announced the new standard mileage rates
Beginning on Jan. 1, 2019, the standard mileage rates
for the use of a car will be:
* 58 cents per mile for business use, up 3.5 cents from
* 20 cents per mile for medical or moving purposes, up 2 cents from 2018, and
* 14 cents per mile in service of charitable organizations.
It is important to remember that thanks to the GOP Tax Act, taxpayers can no longer claim a
miscellaneous itemized deduction for unreimbursed employee business expenses.
The standard mileage rate for business is only available to self-employed
taxpayers filing a Schedule C, C-EZ or F, and for reimbursement of employees by
employers under an accountable plan.
Taxpayers also can no longer 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.
The standard mileage rate for business use is based on
an annual study of the fixed and variable costs of operating an automobile. The
rate for medical and moving purposes is based on the variable costs.The charitable rate is set by Congress and
hasn’t changed in a dog’s age.
Taxpayers still have the option of calculating the
actual costs of using their vehicle and apply the appropriate percentage for
business, medical or moving use instead of using the standard mileage rates.The rules for which method is available for
business use (for Schedule C, Schedule C-EZ or Schedule F) has not changed.