The Internal Revenue Service (IRS) released Notice 2019-02 containing the optional standard mileage rates for 2019.
This notice details the standard mileage rates for the use of a car, van, pickup, or panel truck effective January 1. It serves as a guide to calculate the deductible costs of using a vehicle for business, charitable, medical, and moving purposes.
2019 Rates under the Notice
In 2019, the standard mileage rate for business use will be 58 cents per mile. A rate of 20 cents per mile will be given for medical/moving purposes and 14 cents per mile for charitable organization use.
The mileage rate, when compared to rates in 2018, rose 3.5 cents for business travel and 2 cents for a medical/certain moving expense. Please note that these rates are optional, and should an individual choose to calculate their actual mileage expenses for their vehicle, they could do so.
There are few limitations to the notice regarding situations where an individual cannot use the business standard mileage rate, which are outlined in Section 4.05 of Rev. Proc. 2010-51. In addition, there are regulations on claiming a miscellaneous itemized deduction for unreimbursed employee travel expenses and moving expenses described in the notice that apply.
The IRS states that an annual study of the fixed and variable costs of operating an automobile is used to determine the standard mileage rate for business use (and variable costs govern the rate for medical and moving purposes).
Please reach out to our Tax team for more information on this notice.