IRS Issues Standard Mileage Rates for 2019 by Richard Cabrera, JD, LLM, CPA
The IRS issued the 2019 optional standard mileage rates that taxpayers may use to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Taxpayers also have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 58 cents per mile driven for business use, an increase of 3.5 cents;
- 20 cents per mile driven for medical care or for moving purposes, an increase of 2 cents; and
- 14 cents per mile driven in service of charitable organizations.
It is important to note that a recently enacted change under the Tax Cuts and Jobs Act, taxpayers will not be able to use the business standard mileage rate as a miscellaneous itemized deduction for unreimbursed employee travel expenses. In addition, taxpayers cannot claim a deduction for moving expenses unless they are members of the Armed Forces on active duty under orders of a permanent change of station.
Taxpayers may not use the business standard mileage rate for any vehicles after they use any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
About the Author: Richard Cabrera, JD, LLM, CPA, is a senior manager with Berkowitz Pollack Brant’s Tax Services practice, where he provides tax planning, consulting, and mergers and acquisition services to businesses located in the U.S. and abroad. He can be reached at the CPA firm’s Ft. Lauderdale, Fla., office at (954) 712-7000 or via email at info@bpbcpa.com.
Information contained in this article is subject to change based on further interpretation of tax laws and subsequent guidance issued by the Internal Revenue Service.
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