The IRS issued an increase in the standard mileage rates for business travel, effective January 1, 2019, under the Tax Cuts and Jobs Act of 2017 (tax reform). While the IRS states that standard mileage rates can be applied to the use of a car, van, pickup or panel truck used for business purposes, there are a few changes to applicability of the deduction.
The IRS 2019 Mileage Rates for Using a Vehicle for Business Purposes are:
- 58 cents per mile for each business mile (an increase of 3.5 cents per mile from 2018)
- 20 cents per mile to cover moving or medical purposes (an increase of 2 cents per mile)
- 14 cents per mile driven for charitable organizations (non-variable)
In addition, the new tax legislation has made an impact on ‘where’ the standard mileage deduction rate can be used. Under the new law, no claim is possible for a miscellaneous itemized deduction on employee travel expenses that are unreimbursed. There is also no deduction for employee moving expenses (with the exception of Armed Forces members on active duty).
For details and situations where you cannot use the standard mileage rate, visit: IRS Standard Mileage Rates.
Contact a K·Coe Isom tax advisor with questions about this deduction and its applicability.