2019 Standard Mileage Rates

The optional standard mileage rates for business use of a vehicle will raise from 2018 to 2019. Previously, the rate was 54.5 cents per mile, but has now been raised to 58 cents per mile. Taxpayers can use the optional standard mileage rates for calculation of the deductible costs of the operation of a business automobile.

Readers may note that we have previously written about the discontinuation of miscellaneous itemized deductions under the TCJA. The current notice put out by the IRS further clarifies that this rate does not apply for these past deductions during the 2018-2025 period. There are always exceptions to the rule as there are here. U.S. Armed Forces, state or local government officials paid on a fee basis, and certain performing artists are still allowed to use the standard mileage as a deduction.

Furthermore, the standard mileage rate may also be used under Rev. Proc 2010-51 as the maximum an employer may reimburse an employee for using a vehicle for businesses purposes without an actual expense incurred.

Additionally, the new standard is set for other organizations such as charitable organizations set by statute at 14 cents per mile. Medical care for certain limited moving expense purposes will be 20 cents per mile (2 cents higher than 2018).

Mileage rates are important for those who are able to use them. If you think you or a business may apply for the mileage rates, but aren’t quite sure contact us at the Center for Financial, Legal & Tax, Inc.