Friday, December 14, 2018


The IRS has announced the new standard mileage rates for 2019.

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 2018,
* 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.


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