On January 1st, 2019, the standard mileage rates for the use of vehicles such as cars, vans, and trucks will be:
• 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018,
• 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018, and
• 14 cents per mile driven in service of charitable organizations.
Mileage for both business and medical use had been raised from 2018 rates. However, the rate for charitable miles remains still. These rates have been computed from annual studies of the fixed and variable costs of operating a vehicle.
It’s important to be aware that taxpayers may not claim deductions for unreimbursed employee travel expenses and moving expenses. However, active members of the Armed Force may be able to claim moving expense deductibles if they are moving to a permanent station due to orders.
There is always the option for taxpayers to calculate the actual costs of utilizing their vehicle as opposed to standard mileage rating system.
Taxpayers may not use the business standard mileage rate for a vehicle after any depreciations methods have been used under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction for that specific vehicle. The business standard mileage rate also may not be used for more than four cars at the same time. These limitations, with others, are described and can be found in section 4.05 of Rev. Proc. 2010-51.